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SC S0896

SC S0896
Chatbot Regulation


summary

Introduced
02/05/2026
In Committee
02/05/2026
Crossed Over
Passed
Dead

Introduced Session

126th General Assembly

Bill Summary

Amend The South Carolina Code Of Laws So As To Enact The "chatbot Protection Act"; And By Adding Chapter 80 To Title 39 So As To Provide Restrictions On Certain Chatbot Activities And To Provide For Civil Remedies.

AI Summary

This bill, titled the "Chatbot Protection Act," establishes new regulations for chatbots, which are defined as automated systems that simulate human conversation using artificial intelligence. The act prohibits chatbot providers from processing personal data or chat logs (records of user interactions) for advertising or training purposes without explicit "affirmative consent," meaning a clear, unambiguous agreement from the user that is not implied by inaction or general terms of service. It also restricts the sale of chat logs and requires chatbot providers to implement data security programs and take measures to prevent the re-identification of deidentified data. Furthermore, chatbots must clearly disclose to users that they are interacting with an AI, not a person, and cannot falsely imply endorsement by certified professionals. The bill also outlines user rights, including access to their chat logs, and establishes that chatbots are considered products for liability purposes, meaning providers can be held responsible for injuries caused by their chatbots. The Attorney General is empowered to create rules and regulations to enforce these provisions, and both the Attorney General and individual users can bring civil actions against providers for violations, with potential penalties including fines and damages.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Referred to Committee on Labor, Commerce and Industry (on 02/05/2026)

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