[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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