CHATBOT Act

This bill prohibits AI chatbots from misleading users into believing they are licensed professionals in fields like law, healthcare, finance, accounting, or insurance. It requires companies deploying AI chatbots to avoid generating content that falsely implies the AI has professional credentials or human verification from a licensed practitioner. The Federal Trade Commission would enforce these rules as unfair or deceptive practices, while state attorneys general could also sue for violations and seek damages. Individuals harmed by such violations could file lawsuits to recover actual losses or up to $5,000 per violation, with higher penalties for willful misconduct.