Consumer Protection - Artificial Intelligence Toys (Artificial Intelligence Toy Safety Act)

HB 1261, the Artificial Intelligence Toy Safety Act, requires manufacturers of AI toys marketed to children in Maryland to include specific safety features and data privacy protections. It mandates parental consent mechanisms, age-appropriate content filters to block harmful or inappropriate material (like violence or emotional manipulation), automatic "safe mode" that disables the toy during risky interactions, and prohibitions on using child data for marketing. The law directly affects toy manufacturers selling AI toys in Maryland, requiring them to conduct safety assessments and update software for vulnerabilities. Violations are treated as unfair trade practices under Maryland's Consumer Protection Act, with enforcement handled by a new Review Panel under the Attorney General's office.