S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10494
 
                           I N  A S S E M B L Y
 
                               May 29, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Vanel) --
   read once and referred  to  the  Committee  on  Consumer  Affairs  and
   Protection
 
 AN  ACT  to amend the general business law, in relation to liability for
   false information provided by a chatbot
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 390-f to read as follows:
   §  390-F.  LIABILITY FOR CHATBOT RESPONSES. 1. AS USED IN THIS SECTION
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "CHATBOT" SHALL MEAN AN ARTIFICIAL INTELLIGENCE  SYSTEM,  SOFTWARE
 PROGRAM,  OR TECHNOLOGICAL APPLICATION THAT SIMULATES HUMAN-LIKE CONVER-
 SATION AND INTERACTION THROUGH  TEXT  MESSAGES,  VOICE  COMMANDS,  OR  A
 COMBINATION THEREOF TO PROVIDE INFORMATION AND SERVICES TO USERS.
   (B)  "PROPRIETOR"  REFERS  TO ANY PERSON, BUSINESS, COMPANY, ORGANIZA-
 TION, INSTITUTION OR GOVERNMENT ENTITY OPERATING WITH MORE  THAN  TWENTY
 EMPLOYEES THAT OWNS, OPERATES OR DEPLOYS A CHATBOT SYSTEM USED TO INTER-
 ACT  WITH  USERS.  PROPRIETORS  SHALL NOT INCLUDE THIRD-PARTY DEVELOPERS
 THAT LICENSE THEIR CHATBOT TECHNOLOGY TO A PROPRIETOR.
   2. (A) A PROPRIETOR OF A CHATBOT USED AS AN  ALTERNATIVE  TO  A  HUMAN
 REPRESENTATIVE,  OR  OTHERWISE  AS AN AGENT OF THE PROPRIETOR TO PROVIDE
 ANY SUBSTANTIVE RESPONSE, INFORMATION, ADVICE, OR ACTION  ON  BEHALF  OF
 THE  PROPRIETOR  MAY  NOT DISCLAIM LIABILITY OF ANY KIND WHERE A CHATBOT
 PROVIDES MATERIALLY  MISLEADING,  INCORRECT,  CONTRADICTORY  OR  HARMFUL
 INFORMATION TO A USER THAT RESULTS IN FINANCIAL LOSS OR OTHER DEMONSTRA-
 BLE HARM TO THE USER; PROVIDED, HOWEVER, THAT NO SUCH LIABILITY SHALL BE
 IMPOSED  WHERE THE PROPRIETOR HAS CORRECTED THE INFORMATION AND SUBSTAN-
 TIALLY OR COMPLETELY CURED THE HARM TO THE USER WITHIN  THIRTY  DAYS  OF
 NOTICE OF SUCH HARM.
   (B) THE PROPRIETOR OF A CHATBOT SHALL BE RESPONSIBLE FOR ENSURING SUCH
 CHATBOT  ACCURATELY  PROVIDES  INFORMATION ALIGNED WITH THE FORMAL POLI-
 CIES, PRODUCT DETAILS, DISCLOSURES  AND  TERMS  OF  SERVICE  OFFERED  TO
 USERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15593-01-4
 A. 10494                            2
 
   (C)  A  PROPRIETOR  MAY NOT WAIVE OR DISCLAIM THIS LIABILITY MERELY BY
 NOTIFYING CONSUMERS THAT THEY ARE INTERACTING WITH A  NON-HUMAN  CHATBOT
 SYSTEM.
   3. PROPRIETORS UTILIZING CHATBOTS SHALL PROVIDE CLEAR, CONSPICUOUS AND
 EXPLICIT  NOTICE  TO  USERS THAT THEY ARE INTERACTING WITH AN ARTIFICIAL
 INTELLIGENCE CHATBOT PROGRAM RATHER THAN  A  HUMAN  REPRESENTATIVE.  THE
 TEXT OF THE NOTICE SHALL APPEAR IN THE SAME LANGUAGE AND IN A SIZE EASI-
 LY  READABLE  BY THE AVERAGE VIEWER AND NO SMALLER THAN THE LARGEST FONT
 SIZE OF OTHER TEXT APPEARING ON THE WEBSITE  ON  WHICH  THE  CHATBOT  IS
 UTILIZED.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.