Plain English Breakdown
The bill has passed the House but is currently assigned to a Senate committee; it has not yet been enacted into law, so the effective date (180 days after enactment) cannot be calculated until both chambers pass identical versions and the Governor signs or allows it without signature.
Delaware Computer Communication Disclosure Law
This bill makes it illegal to hide the fact that a consumer is talking to a computer instead of a human during sales if the situation could trick someone into thinking they are speaking with a real person.
What This Bill Does
- Makes it an unlawful practice for sellers to fail to tell consumers they are interacting with computers, chatbots, AI agents, or avatars when those tools might make a reasonable person believe they are talking to a human during a commercial transaction.
- Requires businesses to give clear and conspicuous warnings that the consumer is communicating with a computer; if both text and sound are used in the conversation, the warning must also be given in both text and sound.
- Allows consumers who were not properly notified to sue for actual damages or up to $1,000 per violation, with class actions potentially reaching $10 million.
- Gives the Attorney General power to stop these practices and seek civil penalties of up to $5 million in a single lawsuit.
Who It Names or Affects
- Businesses that use chatbots, artificial intelligence agents, or avatars in sales conversations with customers where a human might be mistaken for real.
- Consumers who interact with computer technology during commercial transactions in Delaware under circumstances where they could believe they are talking to a person.
- The Attorney General's office, which can enforce the new rules and seek penalties.
Terms To Know
- Artificial Intelligence (AI)
- A machine-based system that uses input to generate output like predictions, content, recommendations, or decisions that influence physical or virtual environments.
- Avatar
- A computer-generated entity or visual and auditory representation, such as a digital character or synthetic voice, that interacts with consumers on behalf of a person or business by simulating a persona or presence.
- Chatbot
- A computer program designed to simulate conversation with a human user, especially over the internet.
Limits and Unknowns
- The law only applies when circumstances could cause a reasonable person to believe they are engaging with an actual human.
- It does not apply if there is no commercial transaction involved in the conversation.
- The specific date this law starts depends on when it officially becomes law, as it takes effect 180 days later.