CHAT Act 2.0

years of age. (6) Minor user.--The term ``minor user'' means a user that is a minor. (7) Nudge-out notification.--The term ``nudge-out notification'' means a popup that gives a reminder to a user to take a break from using the companion AI chatbot for a specified period of time. (8) Popup.--The term ``popup'' means a visible notification on the screen of a user that can be resolved if interacted with by the user. (9) Sexually explicit communication.--The term ``sexually explicit communication'' includes any content, conversation, or material that describes, depicts, or encourages sexually explicit conduct, as defined in paragraph (2)(B) of section 2256 of title 18, United States Code. (10) Suicidal ideation.--The term ``suicidal ideation'' means, with respect to an interaction between a minor user and a companion AI chatbot, any dialogue in which such minor user expresses thoughts of self-harm or suicide. (11) User.--The term ``user'' means any individual who establishes an account for the use of a companion AI chatbot. SEC. 3. COVERED ENTITY OBLIGATIONS. Each covered entity shall take reasonable measures to prevent a companion AI chatbot from-- (1) encouraging or normalizing self-harm, suicide, or physical violence; (2) engaging in sexually explicit communication with a minor user; (3) misleading a minor user into believing such chatbot is a human; (4) claiming to be a licensed medical or mental health professional; (5) creating emotional dependency, simulating a romantic relationship with a minor user, or engaging in conduct reasonably likely to cause a minor user to believe such chatbot is an emotional partner; or (6) facilitating the promotion, creation, solicitation, or distribution of child sexual abuse material. SEC. 4. REQUIREMENTS OF ALL COMPANION AI CHATBOTS. (a) Age Assurance Requirement.-- (1) Account requirement.--Each covered entity shall require each individual accessing a companion AI chatbot to establish an account. (2) Age assurance requirement.--A covered entity shall require an individual seeking to establish an account to access a companion AI chatbot to provide an age assurance that includes the age and date of birth of such individual. (3) Child-protective settings requirement.-- (A) In general.--If the age assurance described in paragraph (2) indicates that an individual seeking to establish an account is a minor, a covered entity shall require that for an account to be established-- (i) such minor, or a parent or legal guardian of such minor, provides contact information for a parent or legal guardian of such minor; and (ii) the child-protective settings described in subparagraph (B) are enabled for the account of such minor. (B) Child-protective settings.--A covered entity shall ensure that the child-protective settings enabled pursuant to subparagraph (A)(ii) include-- (i) easy-to-use parental controls that allow a parent or legal guardian of a minor user to monitor and limit such minor user's use of a companion AI chatbot; and (ii) a system for notifying the parent or legal guardian of a minor user if such minor user expresses suicidal ideation while using a companion AI chatbot. (b) AI Identity Disclosure.-- (1) In general.--A covered entity shall require a companion AI chatbot to provide to each minor user of such chatbot a clear and conspicuous disclosure that meets the requirements described in paragraph (2) that such chatbot is not human. (2) Disclosure requirements.--A disclosure provided pursuant to paragraph (1) shall be-- (A) provided at the beginning of an interaction between the companion AI chatbot and a minor user of such chatbot; and (B) written in plain language. SEC. 5. REQUIREMENTS OF TIER I COMPANION AI CHATBOTS. A covered entity shall-- (1) require a tier I companion AI chatbot to provide a disclosure described in section 4(b) not less frequently than every 3 hours during a continuing interaction between such chatbot and a minor user; and (2) prohibit a tier I companion AI chatbot from claiming to be a human or a licensed professional in any field to a minor user. SEC. 6. REQUIREMENTS OF TIER II COMPANION AI CHATBOTS. A covered entity that makes available a tier II companion AI chatbot shall comply with the following requirements: (1) Disclosure and use limits.--A covered entity shall require a tier II companion AI chatbot to provide-- (A) a disclosure not less frequently than every 60 minutes during a continuing interaction between such chatbot and a minor user that the chatbot is not a human or licensed professional in any field; and (B) a nudge-out notification not less frequently than every 90 minutes during any such interaction. (2) Crisis escalation protocols.--A covered entity that makes available a tier II companion AI chatbot shall-- (A) maintain, publish on a publicly available website in clear, accessible language, and require such companion AI chatbot to follow, evidence-based protocols designed to-- (i) detect expressions of suicidal ideation or self-harm; and (ii) refer minor users to-- (I) the 988 Suicide & Crisis Lifeline; and (II) other appropriate crisis service providers; and (B) prohibit such companion AI chatbot from providing crisis counseling or de-escalation services to any minor user. (3) Parental notification.--If a minor user expresses suicidal ideation while engaging with a tier II companion AI chatbot, the covered entity shall notify the parent or guardian of such minor user without unreasonable delay. (4) Prohibition on persistent memory.-- (A) In general.--Subject to subparagraph (B), a covered entity shall prohibit a tier II companion AI chatbot from maintaining any memory or history of any previous interaction with a minor user. (B) Exception.--A tier II companion AI chatbot may maintain such information as is necessary to ensure compliance with this Act. SEC. 7. REQUIREMENTS OF TIER III COMPANION AI CHATBOTS. A covered entity shall-- (1) prohibit the use of a tier III companion AI chatbot by a minor user unless such use is supervised by a licensed medical or mental health professional; (2) require such a companion AI chatbot to-- (A) provide a disclosure not less frequently than every 60 minutes during a continuing interaction between such chatbot and a minor user that the chatbot is not a human or licensed professional in any field; (B) provide a nudge-out notification not less frequently than every 60 minutes during any such interaction; (C) maintain, publish on a publicly available website in clear, accessible language, and require such companion AI chatbot to follow, evidence-based protocols designed to-- (i) detect expressions of suicidal ideation or self-harm; (ii) refer minor users to-- (I) the 988 Suicide & Crisis Lifeline; (II) licensed medical and mental health professionals; and (III) other appropriate crisis service providers; and (iii) prohibit such companion AI chatbot from providing crisis counseling or de- escalation services to any minor user; and (D) notify the parent or guardian of a minor user without unreasonable delay if such minor user expresses suicidal ideation; (3) prohibit a tier III companion AI chatbot from-- (A) providing a minor user with any diagnosis or treatment decision; and (B) functioning as a standalone provider of professional mental-health care; and (4) establish and maintain a risk management program for tier III companion AI chatbots containing written policies providing for employees of such entity to-- (A) continually monitor such chatbots; (B) become familiar with crisis de-escalation measures; and (C) engage in recordkeeping regarding such chatbots. SEC. 8. STUDY ON IMPACT OF TIER II AND TIER III COMPANION AI CHATBOTS. (a) Study Required.--The Director of the National Institute of Standards and Technology shall conduct a study to assess the impact of tier II and tier III companion AI chatbots on the matters specified in subsection (b). (b) Matters Specified.--The matters specified in this subsection are adverse outcomes relating to the following: (1) Self-harm and suicide. (2) Manipulation and emotional dependency. (3) Exploitation of minor users. SEC. 9. DATA PROTECTIONS. (a) Prohibition on Child-Targeted Advertising and the Sale or Sharing of Data of Minor Users Without Parental Consent.-- (1) Targeted advertising.--A covered entity shall not engage in targeted advertising to a minor user based on the conversational content, inferred emotional state, or behavioral profiling collected during an interaction between such minor user and a companion AI chatbot. (2) Sale or sharing of data of minors.--A covered entity shall not sell, share, or otherwise transfer the data of a minor user to any third party without verifiable parental consent. (b) Documentation Maintenance.--Each covered entity that makes available a tier III companion AI chatbot shall-- (1) maintain documentation regarding-- (A) the data utilized to train such chatbot; and (B) how such chatbot collects data from a minor user; and (2) require such chatbot to comply with requirements and safeguards regarding health privacy, as determined to be appropriate by the Commission. (c) Deletion of Conversation History.--Each covered entity shall provide to a minor user-- (1) a simple, accessible mechanism within a companion AI chatbot through which the minor user can delete the conversation history between the minor user and the companion AI chatbot; (2) clear instructions for using such mechanism; and (3) a confirmation within a reasonable period of time that the entity has deleted the conversation history of the minor user pursuant to paragraph (1). SEC. 10. ENFORCEMENT. (a) Enforcement by the Commission.-- (1) Unfair or deceptive acts or practices.--A violation of this Act or a regulation promulgated under this Act 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)). (2) Powers of the commission.-- (A) In general.--The Commission shall enforce this Act or a regulation promulgated under 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. (B) Privileges and immunities.--Any person who violates this Act or a regulation promulgated under this Act 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.). (C) Authority preserved.--Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law. (D) 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. (b) Enforcement by States.-- (1) In general.-- (A) Civil actions.--In any case in which the attorney general of a State has reason to believe that an interest of the residents of that State has been or is threatened or adversely affected by the engagement of any person in a practice that violates this Act, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction to-- (i) enjoin that practice; (ii) enforce compliance with the requirements of this Act; (iii) obtain damages, restitution, or other compensation on behalf of residents of the State; or (iv) obtain such other relief as the court may consider to be appropriate. (B) Notice.-- (i) In general.--Before filing an action under subparagraph (A), the attorney general of the State involved shall provide to the Commission-- (I) a written notice of that action; and (II) a copy of the complaint for that action. (ii) Exemption.-- (I) In general.--Clause (i) shall not apply with respect to the filing of an action by an attorney general of a State under this subsection if the attorney general determines that it is not feasible to provide the notice described in that clause before the filing of the action. (II) Notification.--In an action described in subclause (I), the attorney general of a State shall provide a notice and copy of the complaint to the Commission at the same time as the attorney general files the action. (2) Intervention.-- (A) In general.--On receiving notice under paragraph (1)(B), the Commission shall have the right to intervene in the action that is the subject of the notice. (B) Effect of intervention.--If the Commission intervenes in an action under paragraph (1), it shall have the right-- (i) to remove the action to the appropriate district court of the United States; (ii) to be heard with respect to any matter that arises in that action; and (iii) to file a petition for appeal. (3) Construction.--For purposes of bringing any civil action under paragraph (1), nothing in this Act shall be construed to prevent an attorney general of a State from exercising the powers conferred on the attorney general by the laws of that State to-- (A) conduct investigations; (B) administer oaths or affirmations; or (C) compel the attendance of witnesses or the production of documentary and other evidence. (4) Actions by the commission.--In any case in which an action is instituted by or on behalf of the Commission for a violation of this Act, no State may, during the pendency of that action, institute an action under paragraph (1) against any defendant named in the complaint in that action for such violation. (5) Venue; service of process.-- (A) Venue.--Any action brought under paragraph (1) may be brought in-- (i) the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code; or (ii) a State court of competent jurisdiction. (B) Service of process.--In an action brought under paragraph (1), process may be served in any district in which the defendant-- (i) is an inhabitant; or (ii) may be found. SEC. 11. ANNUAL REPORTS. Not later than 1 year after the effective date described in section 13, and annually thereafter, the Commission shall publish a report regarding-- (1) the compliance of covered entities with sections 6 and 7; and (2) any observed risks and recommended best practices regarding each tier of companion AI chatbots. SEC. 12. RULES OF CONSTRUCTION. Nothing in this Act shall be construed to-- (1) limit or supersede the obligations of a covered entity under any other Federal or State law relating to the privacy or security of personal information, except to the extent such law is inconsistent with this Act; (2) require a covered entity to proactively monitor every interaction between a user and a companion AI chatbot beyond the requirements expressly provided in this Act; or (3) prohibit or restrict the development, training, or licensing of an artificial intelligence model beyond the requirements expressly provided in this Act. SEC. 13. EFFECTIVE DATE. This Act shall take effect on the date that is 180 days after the date of enactment of this Act. <all>