Bill > H0127

This bill establishes new consumer protection provisions in Idaho law regarding the use of artificial intelligence (AI) in communications with consumers. Specifically, it defines it as an unfair and deceptive trade practice for businesses to use chatbots, AI agents, avatars, or computer technologies that engage in conversations without clearly disclosing that the consumer is not communicating with a human being. The bill requires clear and conspicuous notification that the interaction is with an AI system, and prohibits AI communications that could mislead a reasonable consumer into believing they are talking with an actual person. If a business violates these provisions, consumers can file a private lawsuit and potentially receive either actual damages (including the value of time spent resolving issues) or $1,000 in statutory damages, whichever is greater. In class action scenarios, damages are capped at $10,000, and the Attorney General can seek injunctive relief with potential civil penalties of $10,000 minimum plus $1,000 per violation. The law includes provisions for the prevailing party to recover investigative costs and attorney's fees, and is set to take effect on July 1, 2025, with an emergency clause declaring its immediate importance.

Business and Industry

Judiciary, Rules and Administration Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0127/