Bill > S4407

This bill, known as the CHATBOT Act, aims to protect children and teens using artificial intelligence (AI) chatbots by establishing new requirements for companies that provide these services. Specifically, it mandates that companies must create "family accounts" for children under 13, which would allow parents to manage their child's use. For teenagers between 13 and 18, companies must obtain verifiable parental consent before allowing them to create an account, and parents will have the option to set up a family account for them. These family accounts will include various parental controls, such as limiting usage time, disabling certain features like financial transactions or rewards, and controlling how the chatbot uses a child's data. The bill also prohibits companies from using personal data of children and teens for targeted advertising, which is defined as marketing products or services based on data collected from them, with some exceptions for contextual advertising. The Federal Trade Commission (FTC) will be responsible for enforcing these provisions, and states will also have the authority to bring legal action. The bill defines an "artificial intelligence chatbot" as AI that engages in interactive, open-ended conversations and provides outputs that are not pre-determined or limited to specific, narrow purposes. It also clarifies that companies are not required to collect age information if they don't already do so and that they should not use or retain data collected solely for compliance purposes longer than necessary. Finally, the bill requires studies on the impact of AI chatbots on children's social development and a report on the effectiveness of the Act's provisions.