CHATBOT Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7985 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7985

 To prohibit the marketing, advertising, or provision of professional
   services without the appropriate licenses, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 18, 2026

Mr. Mullin (for himself, Ms. Matsui, Mrs. Dingell, Mr. Soto, Ms. Tlaib,
 Ms. McClellan, and Ms. Schrier) introduced the following bill; which
          was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 To prohibit the marketing, advertising, or provision of professional
   services without the appropriate licenses, 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 ``Curbing Harmful AI Tools By Offering
Transparency Act'' or the ``CHATBOT Act''.

SEC. 2. AI CHATBOT TRANSPARENCY.

    (a) Prohibition; Requirement.--
            (1) In general.--A covered entity may not provide the
        generation of output from an AI chatbot, or disseminate
        marketing or advertising materials, that, from the perspective
        of a reasonable user--
                    (A) indicate or imply possession of an appropriate
                license to practice a covered profession without, at
                that time, the possession of such license; and
                    (B) falsely indicate or imply that the output is
                provided or verified by a human in possession of an
                appropriate license to practice a covered profession.
            (2) Imply defined.--For purposes of paragraph (1)(A), the
        term ``imply''--
                    (A) means a representation that a reasonable user
                would understand as claiming possession of a
                professional license, including a statement about
                credentials, qualifications, fictitious professional
                experience, or authoritative and conclusive
                recommendations, advice, or guidance that a reasonable
                user would understand is typically only provided by a
                practitioner of a covered profession; and
                    (B) does not include providing general information,
                procedural guidance not specific to the circumstance of
                the user, or informative content that does not
                represent or suggest licensure.
    (b) Guidance.--Not later than 12 months after the date of the
enactment of this section, the Commission, in consultation with
relevant agencies and stakeholders, including consumer advocacy
organizations and technology experts, shall provide guidance on
complying with the requirements of this section.
    (c) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of
        subsection (a) or a regulation promulgated under such
        subsection shall be treated as a violation of a regulation
        under section 18(a)(1)(B) of the Federal Trade Commission Act
        (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or
        practices.
            (2) Powers of commission.--The Federal Trade Commission
        shall enforce subsection (a) and a regulation promulgated under
        such subsection 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 section. Any person who violates subsection (a) or
        a regulation promulgated under such subsection shall be subject
        to the penalties and entitled to the privileges and immunities
        provided in the Federal Trade Commission Act. Nothing in this
        Act may be construed to limit the authority of the Commission
        under any other provision of law.
    (d) Actions by States.--
            (1) In general.--In any case in which the attorney general
        of a State, or an official or agency of a State, has reason to
        believe that an interest of the residents of such State has
        been or is threatened or adversely affected by an act or
        practice in violation of subsection (a) or a regulation
        promulgated under such subsection, the State, as parens
        patriae, may bring a civil action on behalf of the residents of
        the State in an appropriate district court of the United States
        to--
                    (A) enjoin such act or practice;
                    (B) enforce compliance with this subsection (a) or
                a regulation promulgated under such subsection;
                    (C) obtain damages for actual monetary loss from
                the violation or up to $5,000 in damages for each such
                violation, whichever is greater, on behalf of residents
                State; or
                    (D) obtain such other legal and equitable relief as
                the court may consider to be appropriate.
            (2) Notice.--Before filing an action under this subsection,
        the attorney general, official, or agency of the State involved
        shall provide to the Federal Trade Commission a written notice
        of such action and a copy of the complaint for such action. If
        the attorney general, official, or agency determines it is not
        feasible to provide the notice described in this paragraph
        before the filing of the action, the attorney general,
        official, or agency shall provide written notice of the action
        and a copy of the complaint to the Federal Trade Commission
        immediately upon the filing of the action.
            (3) Authority of the federal trade commission.--
                    (A) In general.--On receiving notice under
                paragraph (2) of an action under this subsection, the
                Federal Trade Commission shall have the right--
                            (i) to intervene in the action;
                            (ii) upon so intervening, to be heard on
                        all matters arising therein; and
                            (iii) to file petitions for appeal.
                    (B) Limitation on state action while federal action
                is pending.--If the Federal Trade Commission or the
                Attorney General of the United States has instituted a
                civil action for violation of this subsection (a) or a
                regulation promulgated under such subsection (referred
                to in this subparagraph as the ``Federal action''), no
                State attorney general, official, or agency may bring
                an action under this subsection during the pendency of
                the Federal action against any defendant named in the
                complaint in the Federal action for any violation of
                such regulation alleged in such complaint.
                    (C) Rules of construction.--
                            (i) State authority.--For purposes of
                        bringing a civil action under this subsection,
                        nothing in this Act may be construed to prevent
                        an attorney general, official, or agency of a
                        State from exercising the powers conferred on
                        the attorney general, official, or agency by
                        the laws of such State to conduct
                        investigations, administer oaths and
                        affirmations, or compel the attendance of
                        witnesses or the production of documentary and
                        other evidence.
                            (ii) Preservation of state authority.--
                        Nothing in this Act may be construed to
                        preempt, limit, or otherwise affect or restrict
                        the application of any State law, rule,
                        regulation, requirement, or standard that
                        provides a user with greater or additional
                        rights, remedies, or protections than the
                        rights, remedies, and protections provided
                        under this Act, including any State law, rule,
                        requirement, or standard governing the
                        licensing, regulation, or discipline of a
                        covered profession regulated under State law,
                        including enforcement actions for the
                        unlicensed practice of such profession.
    (e) Private Right of Action.--
            (1) In general.--A person injured by an act or practice in
        violation of subsection (a) or a regulation promulgated under
        such subsection may bring in an appropriate district court of
        the United States--
                    (A) an action to enjoin the violation;
                    (B) an action to recover damages for actual
                monetary loss from the violation, or to receive up to
                $5,000 in damages for each such violation, whichever is
                greater; or
                    (C) both such actions.
            (2) Willful or knowing violations.--If the court finds that
        the defendant acted willfully or knowingly in committing a
        violation described in paragraph (1), the court may, in its
        discretion, increase the amount of the award to an amount equal
        to not more than 3 times the amount available under paragraph
        (1)(B).
            (3) Costs and attorney's fees.--The court shall award to a
        prevailing plaintiff in an action under this subsection the
        costs of such action and reasonable attorney's fees, as
        determined by the court.
            (4) Limitation.--An action may be commenced under this
        subsection not later than 5 years after the date on which the
        person first discovered or had a reasonable opportunity to
        discover the violation.
            (5) Nonexclusive remedy.--The remedy provided by this
        subsection shall be in addition to any other remedies available
        to the person.
    (f) Adjustment for Inflation for Civil Penalties and Damages.--
Beginning on the date that the Consumer Price Index is first published
by the Bureau of Labor Statistics that is at least 1 year after the
date of the enactment of this Act, and each year thereafter, the amount
specified in subsections (d)(1)(C) and (e)(1)(B) shall be increased by
the percentage increase, if any, in the Consumer Price Index published
on such date from the Consumer Price Index published the previous year.
    (g) Definitions.--In this section:
            (1) Appropriate license.--The term ``appropriate license''
        means a permit or authorization required to practice a covered
        profession, as determined by the State in which the covered
        entity provides the service.
            (2) AI chatbot.--The term ``AI chatbot'' means a system
        that uses artificial intelligence to engage in interactive
        conversations with a user similar to the communications that an
        individual would have with a human.
            (3) Artificial intelligence; ai.--The term ``artificial
        intelligence'' or ``AI'' has the meaning given that term in
        section 9401 of the National Artificial Intelligence Initiative
        Act of 2020 (15 U.S.C. 9401).
            (4) Commission.--The term ``Commission'' means the Federal
        Trade Commission.
            (5) Covered entity.--The term ``covered entity'' means an
        individual or company that deploys an AI chatbot.
            (6) Covered profession.--The term ``covered profession''
        means a profession that does any of the following:
                    (A) Operates in the finance and insurance sector
                (as defined in NAICS Code 52).
                    (B) Operates in the health care and social
                assistance sector (as defined in NAICS Code 62).
                    (C) Provides legal services (as defined in NAICS
                code 5411).
                    (D) Provides accounting, tax preparation,
                bookkeeping, and payroll services (as defined in NAICS
                code 5412).
            (7) State.--The term ``State'' means each of the several
        States, the District of Columbia, each commonwealth, territory,
        or possession of the United States, and each federally
        recognized Indian Tribe.
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