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H 804

An act relating to companion chatbots

2025-2026 Regular Session Introduced by Mike Mrowicki

Vermont would regulate companion chatbots by requiring clear AI disclosures, data protections, safety standards, and oversight to ensure safe, transparent use.

Read first time and referred to the Committee on Commerce and Economic Development
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WeVote Research Nonpartisan
Bill Summary · H 804

Bill Summary: H 804 (2025-2026) — An act relating to companion chatbots (Vermont)

Purpose and intent

  • The bill is designed to regulate “companion chatbots” within Vermont, addressing how these AI-powered tools may be used in consumer, educational, or professional contexts.
  • It aims to establish standards, disclosures, and potential consumer protections to ensure safe, transparent, and accountable use of chatbot technologies that interact with humans in a companion or assistive role.

Key provisions and changes (general outline, as specifics may follow committee deliberations)

  • Definition and scope: The bill defines what constitutes a “companion chatbot.” This likely includes chatbots designed to provide companionship, support, or interactive engagement with users, potentially including but not limited to personal assistant functions, mental health support, or educational aids.
  • Disclosures and transparency:
    • Requires operators of companion chatbots to disclose that users are interacting with an AI-driven system, not a human.
    • May mandate information about data collection, usage, retention, and any limitations of the chatbot’s advice or capabilities.
  • Data privacy and security:
    • Establishes basic privacy protections for user data collected by chatbots, including limits on sensitive data collection and requirements for secure handling and storage.
    • Possible prohibition or restrictions on selling or sharing certain categories of data without user consent.
  • Safety and quality standards:
    • Could set standards for content safety, accuracy, and reliability of the chatbot’s responses.
    • May require reporting or escalation procedures for harmful, unsafe, or erroneous guidance.
  • Age considerations and accessibility:
    • May include special provisions for minors, including additional disclosures or parental consent requirements.
    • Could address accessibility to comply with universal design standards (e.g., for users with disabilities).
  • Accountability and governance:
    • Establishes regulatory oversight mechanisms, possibly through the Vermont Department or a designated commission, to supervise compliance, handle complaints, and conduct audits.
    • May outline penalties, enforcement tools, and a timeline for achieving compliance.
  • Licensing or registration (possible):
    • Operators or developers of companion chatbots might be required to register or obtain a license, or to demonstrate certain qualifications or safeguards.
  • Definitions of prohibited practices:
    • Could prohibit deceptive practices, manipulation, or use of chatbots to exploit users (e.g., for targeted manipulation or disinformation) without clear safeguards.

Note: The bill’s current action history indicates it has been read the first time and referred to the Committee on Commerce and Economic Development (as of 2026-01-28). Co-sponsor: Mike Mrowicki. Specific text, thresholds, and detailed provisions will be fleshed out during committee review and any subsequent floor amendments.

Who would be affected

  • Companion chatbot developers and operators: Entities that design, deploy, or manage chatbots intended for companionship or interactive user engagement in Vermont.
  • Users and consumers: Individuals interacting with companion chatbots, including potential minors and elderly users.
  • Businesses and organizations integrating chatbots**: Companies offering chatbot-based services in Vermont (e.g., customer support, educational tools, therapy aids).
  • Regulatory and oversight bodies: Vermont agencies responsible for enforcing consumer protection, data privacy, and technology standards.

Procedural and timeline aspects

  • Current status: Read first time and referred to the Committee on Commerce and Economic Development.
  • Next steps: Committee consideration, potential amendments, and eventual floor action. If advanced, the bill could proceed through additional readings, votes, and potential conference or reconciliation if amendments differ between chambers.

Potential implications and considerations

  • Balances innovation in AI-powered companionship with consumer protection and transparency.
  • May create a framework for safe deployment of chatbots, particularly where personal data and sensitive interactions occur.
  • Could influence requirements for parental consent, data handling, and age-appropriate design.
  • Economic impact on Vermont tech firms, startups, and service providers through potential licensing, registration, or compliance costs.

If you’d like, I can tailor this summary to include assumptions about specific sections once the bill’s full text is available or provide a side-by-side comparison with related companion chatbot regulations in other states.

Compiled from official sources — confirm details with the bill’s official record.

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