[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4407 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  2d Session
                                S. 4407

 To require the creation of family accounts for children to be able to 
 use artificial intelligence chatbots, to require verifiable parental 
consent for teens using artificial intelligence chatbots, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2026

    Mr. Cruz (for himself, Mr. Schatz, Mr. Curtis, and Mr. Schiff) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To require the creation of family accounts for children to be able to 
 use artificial intelligence chatbots, to require verifiable parental 
consent for teens using artificial intelligence chatbots, 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 ``Children's Health, Advancement, 
Trust, Boundaries, and Oversight in Technology Act'' or the ``CHATBOT 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Artificial intelligence.--The term ``artificial 
        intelligence'' has the meaning given such term in section 5002 
        of the National Artificial Intelligence Initiative Act of 2020 
        (15 U.S.C. 9401).
            (2) Artificial intelligence chatbot.--The term ``artificial 
        intelligence chatbot'' means artificial intelligence that, in 
        an open-ended natural-language or multimodal manner--
                    (A) accepts user input;
                    (B) engages in interactive conversations with a 
                user; and
                    (C) provides outputs that are not--
                            (i) pre-determined or scripted;
                            (ii) limited to contextualized replies or 
                        to a narrow, specified purpose, such as--
                                    (I) customer service;
                                    (II) any operational purpose of a 
                                business;
                                    (III) productivity and analysis 
                                related to source information;
                                    (IV) internal research; or
                                    (V) technical assistance; or
                            (iii) limited to an educational product or 
                        service that primarily provides information, 
                        experience, training, or instruction for the 
                        purpose of building any knowledge, skill, or 
                        craft.
            (3) Child.--The term ``child'' means an individual who is 
        under the age of 13.
            (4) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (5) Covered entity.--The term ``covered entity'' means any 
        public-facing website, online service, or software application 
        that, as its primary function, provides an artificial 
        intelligence chatbot to users.
            (6) Know.--The term ``know'' means to have actual knowledge 
        or knowledge fairly implied on the basis of objective 
        circumstances.
            (7) Parent.--With respect to a child or teen, the term 
        ``parent'' includes a legal guardian of the child or teen.
            (8) Personal data.--The term ``personal data'' has the 
        meaning given the term ``personal information'' in section 1302 
        of the Children's Online Privacy Protection Act of 1998 (15 
        U.S.C. 6501).
            (9) Targeted advertising.--The term ``targeted 
        advertising''--
                    (A) means advertising or any other effort to market 
                a product or service to a child or teen user based on 
                any personal data collected from the child or teen; and
                    (B) does not include--
                            (i) advertising or marketing to a child or 
                        teen user in response to the most recent prompt 
                        input by the child or teen user;
                            (ii) contextual advertising, such as when 
                        an advertisement is displayed to a child based 
                        on the content of the website, online service, 
                        or software application of a covered entity in 
                        which the advertisement appears and does not 
                        vary based on the personal data of the child or 
                        teen user; or
                            (iii) processing personal data solely for 
                        the purpose of measuring or reporting 
                        advertising or content performance, reach, or 
                        frequency, including independent measurement.
            (10) Teen.--The term ``teen'' means an individual who has 
        attained 13 years of age but has not attained 18 years of age.
            (11) Transparency label.--The term ``transparency label'' 
        means a notice that--
                    (A) is clearly and conspicuously displayed to a 
                user;
                    (B) disappears only if the user--
                            (i) exits the artificial intelligence 
                        chatbot; or
                            (ii) affirmatively dismisses the notice; 
                        and
                    (C) discloses that--
                            (i) the artificial intelligence chatbot is 
                        artificial intelligence and not a natural 
                        person; and
                            (ii) any output of the artificial 
                        intelligence chatbot is generated using 
                        artificial intelligence.
            (12) User.--The term ``user'' means, with respect to a 
        covered entity, an individual who registers an account or 
        creates a profile in order to access the artificial 
        intelligence chatbot of the covered entity.

SEC. 3. FAMILY ACCOUNT REQUIREMENT FOR CHILDREN; TERMINATION OF 
              EXISTING USER ACCOUNTS AND PROFILES; DELETION OF PERSONAL 
              DATA.

    (a) Creation and Maintenance of Family Accounts.--A covered entity 
shall require an individual to create and maintain a family account 
that meets the requirements described in section 5 to access an 
artificial intelligence chatbot of the covered entity if the covered 
entity knows such individual is a child.
    (b) Termination of Existing User Accounts and Profiles of Child and 
Teen Users.--A covered entity shall terminate any user account or 
profile of an artificial intelligence chatbot of the covered entity 
that exists as of the effective date of this Act if the covered entity 
knows such user is--
            (1) a child and such child has not created a family 
        account; or
            (2) a teen and the parent of such teen has not provided 
        verifiable parental consent pursuant to section 4(a)(1).
    (c) Deletion of Personal Data of Children and Teens.--
            (1) In general.--Subject to paragraph (2), upon termination 
        of a user account or profile pursuant to subsection (b), a 
        covered entity shall immediately delete all personal data 
        collected from the user or submitted by the user (including 
        data of the user collected from or submitted by the parent of 
        such user) to the artificial intelligence chatbot of such 
        entity.
            (2) Access of children and teens to personal data.--During 
        the 90-day period beginning on the date on which a covered 
        entity terminates a user account or profile pursuant to 
        subsection (b), to the extent technically feasible and not in 
        violation of any licensing agreement, the covered entity shall 
        make available to such user or parent of such user, upon 
        request, a copy of the personal data collected from the user or 
        submitted by the user to the artificial chatbot of such entity 
        in--
                    (A) a manner that is readable and able to be 
                understood by a reasonable person; and
                    (B) a portable, structured, and machine-readable 
                format.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed to prohibit a covered entity from retaining--
                    (A) a record of the termination of a user account 
                or profile; and
                    (B) the minimum information necessary for ensuring 
                compliance with this section.

SEC. 4. VERIFIABLE PARENTAL CONSENT AND OPTION FOR FAMILY ACCOUNTS FOR 
              TEENS.

    (a) In General.--
            (1) Notice and verifiable parental consent.--Prior to an 
        individual's creation of a user account or profile with an 
        artificial intelligence chatbot of a covered entity, if the 
        covered entity knows such individual is a teen, the covered 
        entity shall--
                    (A) provide direct notice to a parent of the teen 
                of the attempt by such teen to create such user account 
                or profile; and
                    (B) obtain verifiable parental consent (as defined 
                in section 1302(9) of the Children's Online Privacy 
                Protection Act (15 U.S.C. 6501(9))) from the parent of 
                the teen in order for the teen to create such user 
                account or profile.
            (2) Option for family accounts.--In obtaining verifiable 
        parental consent under paragraph (1), a covered entity shall 
        provide a parent of a teen with the option to create a family 
        account for the teen that meets the requirements described in 
        section 5.
            (3) Default features.--
                    (A) In general.--Subject to subparagraph (B), if 
                the parent of a teen user does not create a family 
                account for the teen as permitted in paragraph (2), a 
                covered entity shall set and fix any feature or setting 
                described in section (5)(a)(1) at the default setting 
                required by section 5(b)(1) for the user account or 
                profile of such teen.
                    (B) Later creation of a family account.--If a 
                parent of a teen user creates a family account for the 
                teen user after such teen user first creates a user 
                account or profile, the covered entity shall permit 
                such parent to adjust any default setting set and fixed 
                under subparagraph (A).
            (4) Reasonable efforts.--A covered entity shall be deemed 
        compliant with the requirements of this subsection if the 
        covered entity is in compliance with the requirements of the 
        Children's Online Privacy Protection Act of 1998 (15 U.S.C. 
        6501 et seq.) to use reasonable efforts (taking into 
        consideration available technology) to provide a parent with 
        direct notice and to obtain verifiable parental consent.
    (b) Revocation of Consent.--
            (1) In general.--With respect to a parent of a teen who has 
        provided verifiable parental consent under subsection (a)(1), a 
        covered entity shall provide such parent with the ability to 
        revoke such consent.
            (2) Effect of verifiable parental consent.--If a covered 
        entity receives a revocation of verifiable parental consent 
        under paragraph (1), the covered entity shall suspend, delete, 
        or otherwise disable the user account or profile of the teen on 
        the artificial intelligence chatbot that is subject to such 
        revocation.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to require a covered entity to require a teen or the parent 
of such teen to provide government-issued identification for--
            (1) relationship verification; or
            (2) the provision of verifiable parental consent under 
        subsection (a)(1).

SEC. 5. PARENTAL CONTROLS AND SETTINGS FOR FAMILY ACCOUNTS.

    (a) Parental Controls and Settings.--Any family account provided by 
a covered entity to meet the requirements of section 3 or 4 shall 
permit the parent of a child or teen user, as applicable, to--
            (1) determine the privacy and account settings for the user 
        account or profile of such child or teen, including the ability 
        to--
                    (A) limit the amount of time the child or teen is 
                able to spend using the artificial intelligence chatbot 
                of the covered entity;
                    (B) disable rewards or incentives, including badges 
                or other visual award symbols, based on frequency, time 
                spent, or the activity of the child or teen using the 
                artificial intelligence chatbot;
                    (C) disable notifications and push alerts;
                    (D) disable any financial transaction made 
                available while using the artificial intelligence 
                chatbot;
                    (E) disable the generation of an output from the 
                artificial intelligence chatbot that is not in response 
                to the input of a user; and
                    (F) enable a requirement that the covered entity 
                display a transparency label and set the intervals at 
                which the transparency label should be displayed;
            (2) set the number of inputs that, or the period of time 
        during which, an artificial intelligence chatbot may use the 
        personal data of, or such inputs provided by, a child or teen 
        user to generate outputs before such data and such inputs must 
        be deleted from any memory used by the artificial intelligence 
        chatbot to generate outputs;
            (3) access--
                    (A) a full record of the conversations and activity 
                of the child or teen with such artificial intelligence 
                chatbot; and
                    (B) features that allow the parent to monitor, 
                analyze, and understand, at scale, the record of such 
                conversations and activity; and
            (4) receive customized notifications or other alerts when 
        the child or teen attempts to bypass, disable, or violate any 
        parental control or setting described in paragraph (1).
    (b) Default Safeguards and Parental Control Options.--
            (1) Default safeguards.--Each covered entity shall ensure 
        that the default setting of any parental control or setting 
        described in subsection (a) for a family account is the option, 
        or pre-set option (for purposes of paragraph (2)), that 
        provides the most protective level of control with respect to 
        the use of the artificial intelligence chatbot by a child or 
        teen user.
            (2) Pre-set options for parents.--Each covered entity shall 
        provide a parent of a child or teen user with the option to 
        select between several pre-set tiered options for governing the 
        settings described in subsection (a)(2) that balance the 
        tradeoffs between the protectiveness to the child or teen user 
        and the effectiveness of the artificial intelligence chatbot.
    (c) Disclosure and Transparency.--
            (1) In general.--Each covered entity shall ensure that the 
        default setting of any parental control or setting described in 
        subsection (a) within a family account is accompanied by a 
        clear and conspicuous disclosure that defines the scope of the 
        setting in a manner that is understandable by an ordinary 
        consumer.
            (2) Provision of information.--Prior to the creation of a 
        family account, a covered entity shall provide to the parent of 
        a child or teen clear and conspicuous information, which may 
        include a link to a web page of the covered entity, regarding--
                    (A) the policies and practices of the covered 
                entity with respect to each parental control or setting 
                described in subsection (a), including an easy-to-
                understand explanation of the options described in such 
                subsection, the pre-set options described in subsection 
                (b)(2), and the effect of each option or pre-set 
                option; and
                    (B) how to access and manage the family account for 
                the child or teen user, including an easy-to-understand 
                explanation of how to view, change, and determine each 
                parental control or setting described in subsection 
                (a).
    (d) Report.--A covered entity shall provide an easily accessible 
means for a child or teen user or the parent of such child or teen user 
to--
            (1) report violations of the parental controls or settings 
        specified in subsection (a); and
            (2) contact the covered entity with respect to any matter 
        related to child or teen use of the artificial intelligence 
        chatbot of the covered entity.

SEC. 6. PROHIBITION ON TARGETED ADVERTISING.

    (a) In General.--A covered entity shall not use the personal data 
of a user that the covered entity knows is a child or teen for purposes 
of targeted advertising.
    (b) Rule of Construction.--Nothing in subsection (a) shall be 
construed to prohibit a covered entity that knows the age of the child 
or teen from delivering advertising or marketing that--
            (1) complies with the prohibition described in subsection 
        (a); and
            (2) is age-appropriate and intended for a child or teen 
        audience, so long as the covered entity does not use any 
        personal information other than the age of the child or teen to 
        display such advertisement.

SEC. 7. DETERMINATION OF WHETHER A COVERED ENTITY KNOWS THAT AN 
              INDIVIDUAL IS A CHILD OR TEEN.

    (a) Rule of Construction.--For purposes of determining whether a 
covered entity knows that an individual is a child or teen, the 
Commission or attorney general of a State shall rely on competent and 
reliable evidence, taking into account the totality of circumstances, 
including whether a reasonable and prudent person under the 
circumstances would have known that the individual is a child or teen.
    (b) Protections for Privacy.--Nothing in this Act, including a 
determination described in subsection (a), shall be construed to 
require a covered entity to--
            (1) implement an age gating or age verification 
        functionality; or
            (2) affirmatively collect any personal data with respect to 
        the age of any individual that the covered entity is not 
        already collecting in the normal course of business.
    (c) Restriction on Use and Retention of Personal Data.--If a 
covered entity (or a third party acting on behalf of a covered entity) 
voluntarily collects personal data for the purpose of complying with 
this Act, the covered entity (or third party) shall not--
            (1) use any personal data collected for a purpose other 
        than for sole compliance with the requirements of this Act; or
            (2) retain any personal data collected for longer than is 
        necessary to comply with the requirements of this Act or than 
        is minimally necessary to demonstrate such compliance.

SEC. 8. ENFORCEMENT.

    (a) Enforcement by the Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        this Act shall be treated as a violation of a rule defining an 
        unfair or deceptive act or practice prescribed 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 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 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.
    (b) Enforcement by States.--
            (1) Authorization.--Subject to paragraph (3), in any case 
        in which the attorney general of a State has reason to believe 
        that an interest of the residents of the State has been or is 
        threatened or adversely affected by the engagement of a covered 
        entity in a practice that violates section 3 or 4, the attorney 
        general of the State may, as parens patriae, bring a civil 
        action against the covered entity on behalf of the residents of 
        the State in an appropriate district court of the United States 
        to--
                    (A) enjoin such practice;
                    (B) enforce compliance with this Act;
                    (C) on behalf of residents of the State, obtain 
                damages, restitution, or other compensation, each of 
                which shall be distributed in accordance with State 
                law; or
                    (D) obtain such other relief as the court may 
                consider to be appropriate.
            (2) Rights of the commission.--
                    (A) Notice to the commission.--
                            (i) In general.--Except as provided in 
                        clause (ii), before initiating a civil action 
                        under paragraph (1), the attorney general of a 
                        State shall provide to the Commission a written 
                        notice of such action and a copy of the 
                        complaint for such action.
                            (ii) Exception.--If the attorney general 
                        determines that it is not feasible to provide 
                        the notice described in clause (i) before 
                        initiating a civil action under paragraph (1), 
                        the attorney general shall provide written 
                        notice of the action and a copy of the 
                        complaint to the Commission immediately upon 
                        initiating the civil action.
                    (B) Intervention by the commission.--Upon receiving 
                the notice required under subparagraph (A), the 
                Commission may--
                            (i) intervene in the civil action that is 
                        the subject of the notice; and
                            (ii) upon intervening--
                                    (I) be heard with respect to any 
                                matter that arises in such action; and
                                    (II) file a petition for appeal for 
                                any decision in such action.
            (3) Investigatory powers.--Nothing in this subsection may 
        be construed to prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of the State to--
                    (A) conduct investigations;
                    (B) administer oaths or affirmations; or
                    (C) compel the attendance of witnesses or the 
                production of documentary or other evidence.
            (4) Preemptive action 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 a separate civil action under 
        paragraph (1) against any defendant named in the complaint in 
        the action instituted by or on behalf of the Commission for 
        that 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) another 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. 9. RELATIONSHIP TO OTHER LAWS.

    (a) In General.--Subject to subsection (b), the provisions of this 
Act shall preempt any related State law, rule, or regulation only to 
the extent that such State law, rule, or regulation conflicts with a 
provision of this Act.
    (b) Rules of Construction.--Nothing in this Act shall be construed 
to--
            (1) prohibit a State from enacting a law, rule, or 
        regulation that provides greater protection to children than 
        the protections provided in this Act; or
            (2) affect the application of--
                    (A) section 444 of the General Education Provisions 
                Act (20 U.S.C. 1232g, commonly known as the ``Family 
                Educational Rights and Privacy Act of 1974'') or other 
                Federal or State laws governing student privacy; or
                    (B) the Children's Online Privacy Protection Act of 
                1998 (15 U.S.C. 6501 et seq.) or any rule or regulation 
                promulgated under such Act.

SEC. 10. STUDY ON THE IMPACT OF ARTIFICIAL INTELLIGENCE CHATBOTS ON 
              CHILD AND TEEN HUMAN RELATIONSHIPS AND SOCIAL NEEDS.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, the Director of the National Science Foundation shall 
conduct or commission a study on the effects of artificial intelligence 
chatbots on human relationships and the social needs of children and 
teens.
    (b) Scope.--The study required under subsection (a) shall examine, 
with respect to children and teens--
            (1) the use of artificial intelligence chatbots by children 
        and teens to meet companionship or social needs and the 
        resulting effects on the real-world social engagement and 
        mental health of children and teens;
            (2) the prevalence and effects of sycophantic or 
        excessively affirming behavior by artificial intelligence 
        chatbots on children and teens; and
            (3) the role of design features of artificial intelligence 
        chatbots in shaping the results of paragraphs (1) and (2).
    (c) Methodology.--The study required under subsection (a) shall 
draw on existing research, expert consultation, and, where feasible, 
observational, experimental, and survey-based data collection, 
consistent with applicable ethical standards and requirements for 
research involving children and teens.
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Director of the National Science Foundation shall submit 
to the Committee on Commerce, Science and Transportation of the Senate 
and the Committee on Energy and Commerce and the Committee on Science, 
Space, and Technology of the House of Representatives a report 
containing the findings of the study conducted under subsection (a).

SEC. 11. GAO REPORT ON RECOMMENDATIONS AND BEST PRACTICES.

    (a) In General.--Not later than 2 years after the date described in 
section 12, the Comptroller General of the United States (in this 
section referred to as the ``Comptroller General'') shall submit a 
report to the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Energy and Commerce and the Committee on 
Science, Space, and Technology of the House of Representatives that 
examines--
            (1) the effectiveness of this Act, including the overall 
        effectiveness of the family account requirements described in 
        sections 3, 4, and 5;
            (2) the adoption rate of family accounts by parents of 
        children and teens;
            (3) the rate of compliance with the requirements of this 
        Act by covered entities;
            (4) the effectiveness of each parental control or setting 
        required within a family account, including recommendations or 
        best practices to provide the most protective or ideal level of 
        control for children and teens, including analysis of the 
        parental control described in section 5(a)(2), including--
                    (A) using best available research or industry data; 
                and
                    (B) an analysis of model drift with specific 
                consideration of the number of inputs or the duration 
                of time that causes an artificial intelligence chatbot 
                to generate outputs not consistent with its behavior 
                parameters;
            (5) recommendations for parents and covered entities to 
        provide the most protective level of control for children and 
        teens with respect to the use of the parental control described 
        in section 5(a)(2), including recommended settings for limiting 
        the number of inputs or the retention of personal data within 
        the memory of the artificial intelligence chatbot, with 
        reference to the data described in paragraph (4);
            (6) recommendations for parents, based on available data, 
        with respect to best practices for maximizing the protection of 
        a child or teen within a family account while ensuring the 
        effectiveness of an artificial intelligence chatbot;
            (7) recommendations to the Commission for improving 
        enforcement of this Act; and
            (8) recommendations to Congress for potential legislative 
        improvement to this Act.
    (b) Consultation Requirement.--In carrying out the report required 
under subsection (a), the Comptroller General shall consult with each 
of the following:
            (1) The National Institute of Standards and Technology.
            (2) The Commission.
            (3) Representatives of covered entities.
            (4) Parents of children or teen users of artificial 
        intelligence chatbots.
            (5) Individuals with experience advocating for online child 
        safety, consumer protection, or online privacy.
            (6) Individuals with experience in artificial intelligence, 
        computer science, and software engineering.
            (7) Academic experts with expertise in prevention of online 
        harms to children or teens.
            (8) Other relevant Federal agencies with expertise in child 
        or teen online safety.

SEC. 12. EFFECTIVE DATE.

    This Act shall take effect on the date that is 1 year after the 
date of enactment of this Act.
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