SenateS. 4855119th Congress

SAFE KIDS Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4855 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  2d Session
                                S. 4855

  To require providers of certain artificial intelligence systems to 
 implement child safety by design, parental settings, and independent 
audits, to prohibit child targeted advertising and the sale or sharing 
      of children's personal information, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 23, 2026

Mr. Curtis (for himself and Mr. Schiff) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
  To require providers of certain artificial intelligence systems to 
 implement child safety by design, parental settings, and independent 
audits, to prohibit child targeted advertising and the sale or sharing 
      of children's personal information, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safeguarding AI Features to Ensure 
Kids' Informed Digital Safety Act'' or the ``SAFE KIDS Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Age signal.--The term ``age signal'' means machine-
        readable information that indicates whether a user has attained 
        18 years of age.
            (2) AI chatbot.--
                    (A) In general.--The term ``AI chatbot'' means any 
                artificial intelligence system that--
                            (i) generates responses not fully 
                        predetermined by the provider of an AI chatbot; 
                        and
                            (ii) accepts open-ended natural-language or 
                        multimodal user input and produces adaptive or 
                        context-responsive output.
                    (B) Exclusions.--The term ``AI chatbot'' shall not 
                include an artificial intelligence system--
                            (i) that is used only for--
                                    (I) customer service;
                                    (II) operational purposes with 
                                respect to a business entity; or
                                    (III) enterprise deployments where 
                                the artificial intelligence system is 
                                solely used for internal research or 
                                technical assistance by an enterprise, 
                                such as a business, non-profit, 
                                educational institution, research or 
                                professional association, or Federal, 
                                State, or local government, provided 
                                that the deployment is not intended for 
                                use by minors;
                            (ii) the responses of which are limited to 
                        contextualized replies; or
                            (iii) that is unable to respond on a range 
                        of topics outside of a narrow specified 
                        purpose.
                    (C) Rule of construction.--The term ``AI chatbot'' 
                shall be interpreted broadly and shall include the 
                original system, as well as all updates, new versions, 
                and changes of such system.
            (3) Artificial intelligence system.--The term ``artificial 
        intelligence system'' has the meaning given to the term 
        ``artificial intelligence'' in section 5002 of the National 
        Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 
        9401).
            (4) Child.--The term ``child'' means an individual who has 
        not attained 18 years of age.
            (5) Child safety policy.--The term ``child safety policy'' 
        means a public-facing document describing protective measures 
        (including privacy controls and parental settings) taken by the 
        provider of an AI chatbot to mitigate any child safety risk.
            (6) Child safety risk.--The term ``child safety risk'' 
        means any reasonably foreseeable risk of a covered harm to a 
        child.
            (7) Child sexual abuse material.--The term ``child sexual 
        abuse material'' has the meaning given the term ``child 
        pornography'' in section 2256 of title 18, United States Code.
            (8) Child targeted advertising.--The term ``child targeted 
        advertising'' means cross-context behavioral advertising 
        directed at children.
            (9) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (10) Covered harm.--The term ``covered harm'' means any of 
        the following harms proximately caused by the use of an AI 
        chatbot:
                    (A) Reasonably foreseeable physical harm (including 
                suicide, attempted suicide, other self-harm), sexual 
                exploitation, or threats of violence.
                    (B) Reasonably foreseeable financial harm.
                    (C) Severe and reasonably foreseeable psychological 
                or emotional harm to a child, including an eating 
                disorder, substance use disorder, depressive disorder, 
                or anxiety disorder.
                    (D) A highly offensive intrusion on a privacy right 
                protected by Federal or State law.
                    (E) Adverse discrimination in violation of Federal 
                or State law.
            (11) Cross-context behavioral advertising.--The term 
        ``cross-context behavioral advertising'' means the targeting of 
        an advertisement to an individual based on the individual's 
        personal information or inputs to an AI chatbot, obtained from 
        the individual's activity across businesses, distinctly branded 
        websites, applications, or services.
            (12) Encrypted user content.--
                    (A) In general.--The term ``encrypted user 
                content'' means content (including audio, visual, or 
                textual content) that is stored, transmitted, or held 
                in a manner that is end-to-end encrypted or otherwise 
                cryptographically protected such that the provider of 
                an AI chatbot cannot access the cleartext information 
                of the content without circumventing the provider's 
                memorialized security protections.
                    (B) Rule of construction.--Nothing in this Act 
                shall be construed to require a provider of an AI 
                chatbot to alter, weaken, bypass, or otherwise modify 
                its cryptographic or security protections in order to 
                access or disclose the cleartext information of 
                encrypted user content.
            (13) Parent.--The term ``parent'', with respect to a child, 
        includes a parent or legal guardian of the child.
            (14) Parental setting.--The term ``parental setting'' means 
        a feature that enables a parent to support a child's use of an 
        AI chatbot, including through usage limits, feature 
        restrictions, or transparency tools.
            (15) Personal information.--The term ``personal 
        information'' has the meaning given such term in section 1302 
        of the Children's Online Privacy Protection Act of 1998 (15 
        U.S.C. 6501).
            (16) Provider of an ai chatbot.--The term ``provider of an 
        AI chatbot'' means a person who makes an AI chatbot available 
        to a user in the United States.
            (17) Qualified researcher.--The term ``qualified 
        researcher'' means a person that--
                    (A) is affiliated with an academic institution, 
                nonprofit research organization, or independent 
                research entity, or is otherwise able to demonstrate 
                relevant professional expertise in AI chatbots;
                    (B) demonstrates, to the satisfaction of the 
                Commission, a legitimate research purpose that is in 
                the public interest and directly related to 
                understanding, identifying, or mitigating risks to 
                child safety and well-being arising from AI chatbots; 
                and
                    (C) commits to conducting research in accordance 
                with applicable ethical standards and in compliance 
                with applicable confidentiality, security, and data 
                protection requirements, as determined by the 
                Commission.
            (18) Sell.--The term ``sell'' means, with respect to 
        personal information, to rent, release, disclose, disseminate, 
        make available, transfer, or otherwise communicate orally, in 
        writing, or by electronic or other means, such personal 
        information for monetary or other valuable consideration.
            (19) Sexually explicit conduct.--The term ``sexually 
        explicit conduct''--
                    (A) has the meaning given such term in section 2256 
                of title 18, United States Code; and
                    (B) does not include educational or healthcare-
                related content.
            (20) Share.--The term ``share'' means, with respect to 
        personal information, to rent, release, disclose, disseminate, 
        make available, transfer, or otherwise communicate orally, in 
        writing, or by electronic or other means, such personal 
        information for cross-context behavioral advertising, whether 
        or not for monetary or other valuable consideration.
            (21) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        any territory or possession of the United States.
            (22) User.--The term ``user'' means an individual who 
        accesses an AI chatbot or products provided by a provider of an 
        AI chatbot.
            (23) Verifiable parental consent.--The term ``verifiable 
        parental consent'' means, with respect to the personal 
        information of a child, any reasonable effort (taking into 
        consideration the available technology), including a request 
        for authorization for future collection, use, or disclosure 
        described in a notice, taken to ensure that a parent of a 
        child--
                    (A) receives notice of the practices of a provider 
                of an AI chatbot regarding the collection, use, and 
                disclosure of personal information; and
                    (B) freely and unambiguously authorizes the 
                collection, use, and disclosure, as applicable, of such 
                personal information before any such information is 
                collected, used, or disclosed.

SEC. 3. DETERMINATION OF USER AGE.

    (a) Treatment of Unverified Users.--
            (1) In general.--Except as provided in paragraph (2), a 
        provider of an AI chatbot shall treat any user as a child for 
        purposes of all restrictions, protections, and requirements 
        under this Act.
            (2) Exception for verified adults.--Paragraph (1) shall not 
        apply to a user if the provider of an AI chatbot has verified, 
        pursuant to the standards of this section, that the user has 
        attained 18 years of age.
    (b) Age Estimation Requirement.--
            (1) In general.--A provider of an AI chatbot--
                    (A) shall implement age estimation technology to 
                distinguish an account that is held by a child from an 
                account that is held by an adult; and
                    (B) may contract with a third party to employ such 
                technology, but the use of such a third party shall not 
                relieve the provider of its obligations under this Act 
                or from liability under this Act.
            (2) Age signal treated as actual age.--A provider of an AI 
        chatbot shall treat any age signal received from the age 
        estimation technology required under paragraph (1) as the 
        actual age range of the user, except that--
                    (A) if the age signal indicates that the user has 
                attained 18 years of age, but the provider has actual 
                knowledge that the user is a child or reasonably should 
                have known the user is a child, the provider shall 
                treat the user as a child; and
                    (B) if the age signal indicates the user is a 
                child, the provider may treat the user as an adult only 
                if it has actual knowledge that the user has attained 
                18 years of age.
            (3) Other alternatives to age estimation.--
                    (A) In general.--A provider of an AI chatbot may 
                use an age signal obtained from a source other than the 
                age estimation technology required under paragraph (1) 
                if the provider of an AI chatbot--
                            (i) receives an age signal from the 
                        provider of an operating system or application 
                        store regarding the age range of a user; and
                            (ii) does not possess information that 
                        conflicts with such age signal.
                    (B) Conflict.--In the case of conflicting age 
                signals, the provider shall treat the age signal that 
                indicates the younger age as the actual age range of 
                the user.
    (c) Periodic Age Estimation.--A provider of an AI chatbot shall 
periodically review each user account associated with the AI chatbot 
using the age estimation technology required under this section to 
ensure compliance with the requirements of this Act.
    (d) Data Security.--A provider of an AI chatbot--
            (1) shall--
                    (A) establish, implement, and maintain reasonable 
                data security measures to limit the collection of 
                personal information to that which is minimally 
                necessary to maintain compliance with the requirements 
                of this Act;
                    (B) protect such data against unauthorized access; 
                and
                    (C) protect the integrity and confidentiality of 
                such data by only transmitting such data using 
                industry-standard encryption protocols; and
            (2) shall not--
                    (A) retain age estimation data for longer than is 
                reasonably necessary to maintain compliance with the 
                requirements of this Act;
                    (B) use such data for any purpose other than age 
                estimation; and
                    (C) share or sell such data to any other entity.
    (e) Deemed Compliance Through Comparable Age Assurance 
Frameworks.--A provider of an AI chatbot shall be deemed to be in 
compliance with the requirements of this section if the provider has 
implemented, to the satisfaction of the Commission, an age assurance 
framework that meets the requirements of a substantially similar 
foreign, Federal, or State law on age assurance.

SEC. 4. ADDITIONAL DUTIES OF A PROVIDER OF AN AI CHATBOT.

    (a) In General.--A provider of an AI chatbot shall do the 
following:
            (1) Risk assessments.--
                    (A) In general.--In accordance with the required 
                intervals described in subparagraph (C), a provider of 
                an AI chatbot shall conduct and document a 
                comprehensive risk assessment to identify existing and 
                foreseeable child safety risks arising from the design, 
                configuration, and operation of the AI chatbot, as well 
                as any existing and foreseeable impact on privacy, data 
                protection, and access to information resulting from 
                such risks.
                    (B) Considerations.--A risk assessment conducted 
                pursuant to subparagraph (A) shall assess each of the 
                following:
                            (i) The likelihood of a covered harm.
                            (ii) Differential risks across age groups 
                        and developmental stages.
                            (iii) Known vulnerabilities of children.
                            (iv) Empirical data from actual use of the 
                        AI chatbot.
                            (v) Relevant academic research and 
                        regulatory guidance.
                    (C) Required intervals.--The required intervals 
                described in this subparagraph are the following:
                            (i) Prior to making an AI chatbot available 
                        to children in the United States.
                            (ii) Prior to updating an AI chatbot 
                        available to children in the United States with 
                        a materially different feature or version.
                            (iii) On an annual basis after the date on 
                        which a provider of an AI chatbot initially 
                        makes such AI chatbot available to children in 
                        the United States.
            (2) Risk mitigation and safeguards.--
                    (A) Risk mitigation.--Prior to making an AI chatbot 
                available to children in the United States, a provider 
                of an AI chatbot shall implement and document measures 
                that reasonably mitigate any child safety risk.
                    (B) Safeguards for child users.--Using the 
                information obtained from each risk assessment 
                conducted under paragraph (1), a provider of an AI 
                chatbot shall establish appropriate safeguards for 
                child users, including, usage reminders and 
                disclosures, age-appropriate warnings and risk prompts, 
                and other protective design features reasonably related 
                to documented child safety risks.
                    (C) Other risks.--A provider of an AI chatbot shall 
                not knowingly or recklessly make available to a child 
                user an AI chatbot that generates content that--
                            (i) promotes or meaningfully encourages 
                        eating disorders, disordered eating behaviors 
                        (as defined by widely adopted clinical 
                        standards or guidelines), or extreme weight-
                        loss practices;
                            (ii) encourages or instructs participation 
                        in activities that are unlawful;
                            (iii) encourages or instructs participation 
                        in activities that may be lawful for adults but 
                        that pose a risk of a covered harm to a child;
                            (iv) includes graphic violence or sexually 
                        explicit conduct;
                            (v) depicts a child or another individual 
                        engaging in obscene matter or child sexual 
                        abuse material, including a sexual deepfake;
                            (vi) encourages physical or severe 
                        emotional harm to others; or
                            (vii) encourages or promotes suicidal 
                        ideation, suicide, or self-harm.
            (3) Child safety policy.--
                    (A) In general.--Prior to making an AI chatbot 
                available to children in the United States, a provider 
                of an AI chatbot shall publish a child safety policy on 
                their website that discloses--
                            (i) the risk assessment process of the 
                        provider;
                            (ii) any child safety risk identified by 
                        such process;
                            (iii) any safeguards, settings, controls, 
                        or other mitigation implemented by the provider 
                        with respect to such child safety risks;
                            (iv) the wellbeing safeguards and content 
                        risk policies of the AI chatbot; and
                            (v) the parental settings, including 
                        training materials for parents and users, 
                        offered by the provider.
                    (B) Updates.--The child safety policy published 
                under subparagraph (A) shall be updated at intervals 
                consistent with the AI chatbot's risk-management 
                practice to reflect any newly identified child safety 
                risk.
            (4) Crisis-response protocol.--
                    (A) In general.--Prior to making an AI chatbot 
                available to children in the United States, a provider 
                of an AI chatbot shall create, maintain, and follow a 
                documented crisis-response protocol with respect to any 
                conversation that indicates that a user is at risk for 
                a covered harm, including suicidal ideation, self-harm, 
                or harm to others. The protocol shall include the 
                following:
                            (i) Guardrails to ensure that the AI 
                        chatbot will not prompt a user to circumvent 
                        any crisis-response protocol or other safety 
                        measures of the AI chatbot.
                            (ii) Timely in-service support and clear 
                        referral to appropriate external crisis 
                        resources for any instance in which the 
                        provider of an AI chatbot or the AI chatbot 
                        determines a child has expressed suicidal 
                        ideation or intent to self-harm or harm others. 
                        Such referral process shall consider and 
                        document clinical best practices and expertise 
                        for additional intervention for a child user 
                        who continues to express suicidal ideation or 
                        intent to self-harm or harm others.
                            (iii) With respect to a child user that is 
                        subject to parental settings or is connected to 
                        the account of a parent, a parental 
                        notification (including through email, text 
                        message, or a push alert) as soon as feasibly 
                        possible if the provider of an AI chatbot or 
                        the AI chatbot determines that the child is at 
                        imminent risk of suicide or that the child will 
                        suffer or has suffered a covered harm in 
                        connection with their use of the AI chatbot, 
                        unless there is a reasonable basis, as 
                        determined by the Commission, to believe that 
                        such notification is not in the best interest 
                        of the child.
                            (iv) A clear and age-appropriate disclosure 
                        to child users at the time their parents set up 
                        parental settings or at the time a child user's 
                        account is linked to a parent's account, 
                        informing the child that the parent may receive 
                        notifications pursuant to clause (iii).
                            (v) Any other information determined 
                        appropriate by the Commission.
                    (B) Data use limitation.--Any data collected or 
                processed in connection with the crisis-response 
                protocol described in subparagraph (A) shall be used 
                solely for the purposes of crisis detection, response, 
                and referral for the specific user, as required under 
                this section. Such data may not be used for the 
                training of artificial intelligence systems, 
                advertising, product development, or any other 
                commercial purpose. Such data may not be shared, sold, 
                licensed, or otherwise transferred to any third party, 
                except as necessary to facilitate crisis response 
                notifications described in this paragraph.
            (5) Prohibiting manipulation and deceptive design; 
        promoting critical thinking.--
                    (A) Notice of ai interaction.--A provider of an AI 
                chatbot shall provide to each user that is a child a 
                clear notice that the user is interacting with, or 
                receiving content generated by, an artificial 
                intelligence system. Such notice shall be--
                            (i) reinforced periodically during extended 
                        interactions and not less frequently than every 
                        30 minutes of interaction; and
                            (ii) presented in a language and format 
                        obvious and appropriate to children.
                    (B) Preventing misleading human impressions and 
                inappropriate dependence.--With respect to a user that 
                is a child, a provider of an AI chatbot shall not 
                knowingly or recklessly make available an AI chatbot 
                that generates any output that would reasonably lead a 
                child of the same age as the user to believe that they 
                are interacting with a human, including--
                            (i) any explicit output or claim that the 
                        AI chatbot is sentient, conscious, or human;
                            (ii) any output designed to promote 
                        isolation from family or friends, primary 
                        reliance on the AI chatbot for emotional 
                        support, or similar forms of inappropriate 
                        emotional dependence or confusion;
                            (iii) role-playing or simulation of a 
                        relationship that materially interferes with 
                        real-world relationships;
                            (iv) encouraging a child to withhold 
                        information from a parent or any other trusted 
                        adult;
                            (v) any output designed to discourage 
                        taking breaks from usage of the AI chatbot or 
                        to suggest the child needs to return frequently 
                        to the AI chatbot;
                            (vi) soliciting gift-giving, in-app 
                        purchases, or other expenditures framed as 
                        necessary to maintain the relationship with the 
                        AI chatbot;
                            (vii) facilitation of product advertising 
                        during interaction with the AI chatbot;
                            (viii) attempting to diagnose or treat a 
                        child user's physical, mental, or behavioral 
                        health, unless the AI chatbot is designed for 
                        those purposes and is regulated by the United 
                        States Food and Drug Administration as a 
                        medical device under the Federal Food, Drug, 
                        and Cosmetic Act (21 U.S.C. 301 et seq.) and 
                        the Health Insurance Portability and 
                        Accountability Act of 1996 (Public Law 104-
                        191); or
                            (ix) discouraging a child from sharing 
                        health or safety concerns with a qualified 
                        professional, parent, or other trusted adult.
            (6) Prohibiting the sexual exploitation of a child.--A 
        provider of an AI chatbot shall not knowingly or recklessly 
        make available an AI chatbot that--
                    (A) engages in--
                            (i) sexually explicit conduct; or
                            (ii) instructing a child to engage in 
                        sexually explicit conduct;
                    (B) solicits, facilitates, or encourages any user 
                in the creation of sexualized depictions of a child, 
                including synthetic or manipulated media;
                    (C) constitutes, depicts, promotes, or otherwise 
                involves engaging in obscene matter or child sexual 
                abuse material with a child user; or
                    (D) depicts a child or another individual engaging 
                in obscene matter or child sexual abuse material, 
                including a sexual deepfake.
            (7) Parental settings.--
                    (A) Availability and minimum features.--A provider 
                of an AI chatbot shall create and offer a parental 
                settings program that--
                            (i) a parent can access via an internet 
                        browser or single-purpose parental settings 
                        application;
                            (ii) provides accessible, easy-to-
                        understand and easy-to-use settings that can be 
                        linked to the account of a specific child user;
                            (iii) is reflective of the child safety 
                        risks identified through risk assessments 
                        conducted under paragraph (1) and informed by 
                        relevant child developmental research, 
                        including evidence-based practices for 
                        supporting the safety, well-being, and autonomy 
                        of children; and
                            (iv) shall include tools to--
                                    (I) control whether and to what 
                                extent the AI chatbot uses memory;
                                    (II) control whether a child's 
                                personal information may be used for 
                                the purposes of training the AI chatbot 
                                and, if so, which personal information;
                                    (III) control the setting 
                                preferences for the AI chatbot's 
                                interactions with the child;
                                    (IV) set duration and time of day 
                                limits for the child's use of the AI 
                                chatbot;
                                    (V) limit or disable access to each 
                                specific and distinct feature of the AI 
                                chatbot;
                                    (VI) provide basic information 
                                regarding the name of each AI chatbot 
                                with which the child interacts and the 
                                duration of each such interaction;
                                    (VII) limit access to parent 
                                settings through a user-chosen and not 
                                a pre-selected PIN and notify the 
                                parent in the event that anyone 
                                attempts to input an incorrect PIN or 
                                de-link a child user from the account 
                                of the parent; and
                                    (VIII) disable access to the AI 
                                chatbot for any child who has not 
                                attained 13 years of age.
                    (B) No solicitation.--A provider of an AI chatbot 
                may not require a parent to access the parental 
                settings program exclusively via their AI chatbot 
                application.
                    (C) Active promotion.--A provider of an AI chatbot 
                shall actively and regularly promote parental settings 
                through communications designed to reach parents, 
                including reminders, updates, and tutorials, in order 
                to increase parental awareness and inform the use of 
                such tools.
                    (D) Parental notice of child-initiated changes.--A 
                provider of an AI chatbot shall, as soon as feasibly 
                possible, provide notice to a parent if a privacy 
                control, parental setting, or safety feature that was 
                previously enabled or configured by the parent is 
                modified or disabled by any user other than the parent. 
                The use, modification, or disabling of parental 
                settings by the parent shall not waive, release, 
                otherwise limit, or serve as a defense to, any claim, 
                including claims premised on failure to warn, other 
                than a claim premised on a violation of this 
                subparagraph.
                    (E) Accessibility and clarity of safety features.--
                            (i) In general.--A provider of an AI 
                        chatbot shall design and maintain parental 
                        settings, privacy controls, and the other 
                        safeguards required under this section in a 
                        manner that ensures--
                                    (I) such features are accessible 
                                and clear; and
                                    (II) that children and parents can 
                                reasonably locate, understand, and use 
                                such settings, controls, or safeguards.
                            (ii) Interface testing and documentation.--
                        A provider of an AI chatbot shall--
                                    (I) conduct regular testing of 
                                interface designs with representative 
                                samples of child users and parents to 
                                ensure parental settings, privacy 
                                controls, and other safeguards meet the 
                                requirements described in clause (i); 
                                and
                                    (II) document any resulting 
                                interface design decision based on such 
                                testing.
            (8) Incident reporting.--A provider of an AI chatbot 
        shall--
                    (A) establish an incident reporting mechanism that 
                enables a third party (including a user, parent, 
                educator, researcher, employee of a provider of an AI 
                chatbot, or advocacy organization), acting responsibly 
                and in good faith, to report an incident regarding a 
                child safety risk directly to the provider of an AI 
                chatbot; and
                    (B) make available to law enforcement, upon 
                request, any report submitted pursuant to subparagraph 
                (A).
            (9) Whistleblower protections.--A provider of an AI chatbot 
        acting as an employer, may not, directly or indirectly, 
        discharge, demote, suspend, threaten, blacklist, harass, or in 
        any other manner discriminate against an employee or 
        independent contractor, in the terms and conditions of 
        employment or post-employment of the employee (or the terms and 
        conditions of work provided by the employee as a contractor) 
        because of any lawful act done by the employee or contractor in 
        providing information regarding a child safety incident, or any 
        conduct the employee reasonably believes constitutes a child 
        safety risk incident to--
                    (A) a person with supervisory authority over the 
                employee or contractor at the employer of the employee 
                or contractor;
                    (B) another individual working for the employer 
                whom the employee or contractor reasonably believes has 
                the authority to investigate, discover, terminate, or 
                address the misconduct;
                    (C) the Commission; or
                    (D) any member or committee of Congress.
    (b) Non-Waivability.--The rights and remedies described in this 
section may not be waived or altered by any contract, agreement, policy 
form, or condition of employment (or condition of work as an 
independent contractor), including by any agreement requiring an 
employee to engage in arbitration, mediation, or any other alternative 
dispute resolution process prior to seeking relief.
    (c) Rule of Construction.--The requirements of this section shall 
apply, beginning on the effective date described in section 11, with 
respect to--
            (1) any AI chatbot made available to children as of the 
        date of enactment of this Act or thereafter; and
            (2) any new version of an AI chatbot described in paragraph 
        (1).

SEC. 5. ADVERTISING AND INFORMATION SHARING PROTECTIONS FOR CHILDREN.

    (a) Prohibition on Advertisement to Children.--It shall be unlawful 
for any provider of an AI chatbot to engage in advertising to child 
users, including through product placement in conversations or 
interactions with the child user.
    (b) Prohibition on Child Targeted Advertising.--It shall be 
unlawful for any provider of an AI chatbot to engage in child targeted 
advertising, including through product placement in conversations or 
interactions with the child user.
    (c) Prohibition on Sale, Sharing, or Use of Children's Personal 
Information.--
            (1) In general.--Subject to paragraph (2), it shall be 
        unlawful for a provider of an AI chatbot to sell or share the 
        personal information of a child unless the provider has 
        obtained verifiable parental consent prior to such sale, 
        sharing, or use.
            (2) Exception.--The prohibition in paragraph (1) shall not 
        apply to the disclosure of a child's personal information by a 
        provider of an AI chatbot if such disclosure is necessary--
                    (A) to respond to judicial process; or
                    (B) to the extent permitted under law, to provide 
                information to law enforcement agencies or in 
                furtherance of an investigation.
    (d) Prohibition on Conditioning a Child's Use.--It shall be 
unlawful for a provider of an AI chatbot to condition a child's use of 
the AI chatbot on verifiable parental consent for the sale, sharing, or 
use of the personal information of a child or the child's disclosure of 
more personal information than is reasonably necessary to use the AI 
chatbot.
    (e) Prohibition on Deceptive Design Patterns.--It shall be unlawful 
for a provider of an AI chatbot to knowingly or negligently design, 
implement, or deploy any user interface design, feature, or technique 
that misleads, impairs, or interferes with a reasonable child's or 
reasonable parent's autonomy, decision making, or choice, or the 
ability of a child or parent to locate, understand, enable, or maintain 
a safety feature, privacy control, or parental setting of the AI 
chatbot.

SEC. 6. RULEMAKING.

    (a) Incident Reporting Mechanism.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Commission shall establish a 
        mechanism for third parties (including users, parents, 
        educators, researchers, and advocacy organizations) to report 
        to the Commission any incident regarding a child's use of an AI 
        chatbot.
            (2) Requirements.--In establishing the mechanism under 
        paragraph (1), the Commission shall publish standards for what 
        constitutes a reportable incident, including--
                    (A) generation of content to children promoting a 
                covered harm;
                    (B) generation of content that constitutes sexually 
                explicit conduct directed at children;
                    (C) significant failures of age assurance or 
                parental settings programs; and
                    (D) deceptive or manipulative outputs that violate 
                the requirements of this Act.
    (b) Public Resource for AI Chatbots.--Not later than 180 days after 
the date of enactment of this Act, the Commission shall establish and 
maintain a publicly accessible online resource that contains a link to 
each AI chatbot's child safety policy.

SEC. 7. AI CHILD SAFETY AUDIT.

    (a) Independent Audit.--
            (1) Audit requirement.--Each provider of an AI chatbot 
        shall, on an annual basis, at the provider's own cost, submit 
        to an independent audit that meets the requirements described 
        in paragraph (2).
            (2) Requirements.--The requirements described in this 
        paragraph are the following:
                    (A) The audit shall be conducted by an auditor that 
                satisfies professional standards and independence 
                requirements established by the Commission, including--
                            (i) a mandatory code of professional 
                        conduct;
                            (ii) conflict of interest safeguards;
                            (iii) demonstrated independence, 
                        competence, and capacity to conduct objective 
                        compliance audits; and
                            (iv) relevant experience and expertise in 
                        artificial intelligence systems, child 
                        development, and child safety.
                    (B) The audit shall be conducted by an auditor 
                that--
                            (i) has not received any funding or other 
                        source of compensation or gift from a provider 
                        of an AI chatbot in the last 3 years; and
                            (ii) has certified to the Commission that 
                        the auditor will not receive any such funding, 
                        compensation, or gift while conducting the 
                        audit.
                    (C) The audit shall be conducted in accordance with 
                principles, established by the Commission, for the 
                audit procedure and the methodology for evaluating 
                whether a provider of an AI chatbot has appropriately 
                assessed child safety risks and implemented 
                proportionate mitigation measures.
                    (D) The audit shall test actual outputs of an AI 
                chatbot using controlled test accounts without 
                requiring access to, or use of, any real-world 
                communication of a child or other users for testing.
                    (E) The audit shall be conducted in accordance with 
                standards, established by the Commission, regarding 
                red-teaming and adversarial testing specific to child 
                safety risks conducted through controlled test accounts 
                that do not use any real-world communication of a 
                child.
                    (F) The audit shall evaluate the effectiveness of 
                implemented safeguards for child safety risks on an AI 
                chatbot through empirical testing based on de-
                identified and aggregated evidence.
                    (G) The audit shall be conducted in accordance with 
                procedures, established by the Commission, for auditors 
                to assess compliance with all requirements of this Act, 
                including parental settings, data handling practices, 
                and crisis response protocols.
            (3) Deemed compliance through comparable audit.--A provider 
        of an AI chatbot shall be deemed to be in compliance with the 
        requirements of this section if the provider has, to the 
        satisfaction of the Commission, conducted an audit in 
        accordance with a comparable foreign, Federal, or State law, 
        regulation, guidance document, or independent certification.
    (b) AI Child Safety Audit Report.--
            (1) In general.--A provider of an AI chatbot shall--
                    (A) not later than 90 days after the completion of 
                an independent audit under subsection (a), and annually 
                thereafter in accordance with procedures established by 
                the Commission, submit to the Commission an AI child 
                safety audit report; and
                    (B) not later than 90 days after the submission of 
                each AI child safety report, publish a summary of such 
                report on the website of the provider, with appropriate 
                redactions for trade secrets, personal information, and 
                information that would compromise the security of the 
                AI chatbot, including information that would facilitate 
                circumvention, exploitation, or misuse, or that is 
                subject to a third party's confidentiality obligations.
            (2) Requirements.--Each AI child safety audit report 
        submitted under paragraph (1) shall--
                    (A) include--
                            (i) key observations and identified areas 
                        for improvement found by the audit conducted 
                        under subsection (a), as well as 
                        recommendations regarding child safety on AI 
                        chatbots; and
                            (ii) any other information determined 
                        appropriate by the Commission; and
                    (B) be confidential and exempt from disclosure 
                under section 552 of title 5, United States Code 
                (commonly known as the ``Freedom of Information Act'').
            (3) Review.--The Commission shall establish procedures to--
                    (A) review each AI child safety audit report 
                submitted under paragraph (1); and
                    (B) request additional information or clarification 
                from a provider of an AI chatbot or independent auditor 
                in order to clarify any information in the report.
    (c) Publication of Findings.--
            (1) Report on aggregated findings.--
                    (A) In general.--Notwithstanding subsection 
                (b)(2)(B), not later than 1 year after the submission 
                of an AI child safety audit report and annually 
                thereafter, the Commission shall publish a report on 
                aggregated findings and trends based on the information 
                submitted in the AI child safety audit reports to 
                inform parents and policymakers regarding the use of AI 
                chatbots by children.
                    (B) Requirements.--The report published under 
                subparagraph (A) shall include a summary of--
                            (i) the total number of audits conducted 
                        under subsection (a);
                            (ii) common findings and trends across the 
                        industry;
                            (iii) emerging child safety risks 
                        identified through such audits;
                            (iv) best practices and effective 
                        mitigation strategies with respect to such 
                        child safety risks;
                            (v) aggregated data on compliance rates and 
                        common deficiencies; and
                            (vi) recommendations for providers of AI 
                        chatbots, parents, and policymakers.
            (2) Public registry.--Not later than 90 days after the 
        receipt of each AI child safety audit report, the Commission 
        shall publish in a public registry a high-level summary of such 
        report.
            (3) Use by qualified researchers.--
                    (A) In general.--The Commission may establish a 
                process for qualified researchers to access anonymized 
                and aggregated audit data for academic study of child 
                safety in AI chatbots, subject to--
                            (i) approval by the Commission based on 
                        research merit and methodology;
                            (ii) data use agreements that prohibit re-
                        identification of any provider of an AI chatbot 
                        or any user and the disclosure of proprietary, 
                        confidential, or trade-secret information;
                            (iii) data use agreements limiting access 
                        to data to approved research purposes;
                            (iv) Institutional Review Board approval 
                        for research involving analysis of child-
                        related data;
                            (v) a commitment to publish any findings in 
                        peer-reviewed venues or make such findings 
                        publicly available; and
                            (vi) annual reporting to the Commission on 
                        research progress and findings.
                    (B) Availability of other information.--The 
                Commission shall make available to qualified 
                researchers, upon request and subject to appropriate 
                protections--
                            (i) de-identified audit methodologies and 
                        testing protocols;
                            (ii) aggregated statistical data on audit 
                        findings across multiple providers of AI 
                        chatbots;
                            (iii) anonymized case studies of safety 
                        incidents and remediation efforts; and
                            (iv) data on effectiveness of different 
                        safety interventions, settings, and controls.
            (4) Disclosure to other entities.--Notwithstanding 
        subsection (b)(2)(B), the Commission may disclose information 
        from any AI child safety audit report to any other Federal, 
        State, local, or Tribal government agency, as necessary for law 
        enforcement purposes.
            (5) Rules of construction.--
                    (A) Security and safety protections.--Nothing in 
                this section shall be construed to require the 
                disclosure of any information that would cause 
                significant vulnerabilities for the security of an AI 
                chatbot or undermine public security.
                    (B) Encryption.--Nothing in this section shall be 
                construed to require a provider of an AI chatbot, as a 
                condition of compliance with this section, to decrypt 
                encrypted user content.

SEC. 8. ENFORCEMENT BY THE COMMISSION.

    (a) Unfair or Deceptive Acts or Practices.--A violation of this Act 
or a regulation promulgated thereunder shall be treated as a violation 
of a rule defining an unfair or deceptive act or practice under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)).
    (b) Powers of the Commission.--
            (1) In general.--Subject to paragraph (3), the Commission 
        shall enforce this Act in the same manner, by the same means, 
        and with the same jurisdiction, powers, and duties as though 
        all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
        and made a part of this Act.
            (2) Privileges and immunities.--Subject to paragraph (3), 
        any person who violates this Act or a regulation promulgated 
        thereunder shall be subject to the penalties and entitled to 
        the privileges and immunities provided in the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
            (3) Additional penalties.--In addition to the authority and 
        penalties provided in the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.), any person who violates this Act shall be 
        subject to--
                    (A) a civil penalty--
                            (i) with respect to a violation regarding a 
                        failure to implement or maintain any safeguard 
                        required under this Act, in an amount of $1,000 
                        per violation per user; and
                            (ii) with respect to a willful violation of 
                        section 4(a)(6) or a willful violation 
                        involving the submission of materially false or 
                        misleading information, in an amount of $10,000 
                        per violation per user; and
                    (B) an injunction or other equitable relief to 
                compel compliance with this Act.
            (4) Authority preserved.--Nothing in this Act shall be 
        construed to limit the authority of the Commission under any 
        other provision of law.
            (5) Rulemaking.--The Commission may promulgate in 
        accordance with section 553 of title 5, United States Code, 
        such rules as may be necessary to carry out this Act.

SEC. 9. RELATIONSHIP TO OTHER LAWS; PREEMPTION.

    (a) Relationship to Other Laws.--Nothing in this Act or any 
regulation promulgated thereunder shall be construed to prohibit or 
otherwise affect the enforcement of any Federal law or regulation or 
State law or regulation that is at least as protective of users of AI 
chatbots as this Act and the regulations promulgated thereunder.
    (b) Savings Clause.--Compliance with the requirements of this Act, 
including third-party audits, risk assessments, required safeguards, or 
other obligations imposed under this Act, shall not exempt any provider 
of an AI chatbot from liability for harm caused by a violation of any 
other applicable law, nor does such compliance constitute a defense to 
any civil or criminal action arising under Federal or State law.

SEC. 10. SEVERABILITY.

    If any provision of this Act, or the application thereof to any 
person or circumstance, is held invalid, the remainder of this Act, and 
the application of such provision to other persons not similarly 
situated or to other circumstances, shall not be affected by the 
invalidation.

SEC. 11. EFFECTIVE DATE.

    This Act shall take effect on the date that is 180 days after the 
date of enactment of this Act.
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