House Bill 325 Alabama 2026 Session

Summary

Primary Sponsor

Parker MooreRepresentative

Republican

Session

2026 Regular Session

Title

AI chatbots; unfair or deceptive trade practice for failing to notify consumer about AI chatbot; private right of action and enforcement provided for

Summary

HB325 would require Alabama AI chatbots in consumer transactions to disclose that the user is talking to a computer, create private and AG-enforcement remedies for violations, and set penalties, with an effective date of October 1, 2026.

What This Bill Does

The bill makes it illegal to use an AI chatbot in a consumer transaction without notifying the user that they are communicating with a computer. If a violation occurs, consumers could sue for injunctive relief and damages, including actual damages plus statutory damages up to $1,000 per violation, with class actions capped at $10 million. The Alabama Attorney General could also sue to enforce the law and seek civil penalties up to $5 million per violation. The act provides definitions for AI, chatbot, and related terms and becomes effective on October 1, 2026.

Who It Affects

• Consumers who interact with AI chatbots in Alabama consumer transactions; they would have a private right of action and potential damages for undisclosed AI interactions.
• Businesses and AI chatbot operators serving Alabama consumers; they would be required to disclose that the interaction is with a computer and could face private lawsuits, injunctive relief, penalties, and AG enforcement if they fail.

Key Provisions

• Disclosure requirement: In every interaction, the chatbot must inform the consumer at the start and at regular intervals that they are communicating with a computer, not a human.
• Enforcement and remedies: The act creates a private right of action with injunctive relief and damages (actual damages plus statutory damages up to $1,000 per violation; class actions capped at $10,000,000), and authorizes the Attorney General to seek civil penalties up to $5,000,000 per violation.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection