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LD 1727

An Act To Ensure Transparency In Consumer Transactions Involving Artificial Intelligence

132nd Legislature (2025-2026) Introduced by Anne Carney and 5 co-sponsors

Requires disclosure when AI participates in consumer transactions, informing buyers when AI is used; minor state costs and possible rise in civil suits; enacted 6/12/2025.

Signed by Governor
#businesspractices #sales #unfairtradepractices
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WeVote Research Nonpartisan
Bill Summary · LD 1727

Summary — LD 1727: An Act To Ensure Transparency In Consumer Transactions Involving Artificial Intelligence

Bill Number: LD 1727
Status: Signed by Governor (June 12, 2025)
Introduced: April 17, 2025
Subject: Business practices; sales; unfair trade practices
Committee: Health Coverage, Insurance and Financial Services (as amended by Committee Amendment “A” (H‑544))

Purpose / Intent

The bill’s stated purpose (from the title and legislative action) is to increase transparency for consumers when artificial intelligence (AI) is used in commercial transactions. In general terms, it seeks to ensure consumers are informed when AI systems meaningfully participate in interactions that affect purchasing, sales, services, or other consumer-facing transactions.

What is Known (from available documents)

  • The Legislature passed the bill as amended by Committee Amendment “A” (H‑544); it was engrossed and enacted in June 2025.
  • The available fiscal notes (LR2313(02) and LR2313(03)) summarize expected fiscal and judicial impacts but do not include the bill’s full statutory text in the materials provided here.

Key Impacts (from fiscal and procedural materials)

  • Fiscal: The Office of the Legislature estimated a minor General Fund cost increase and a minor General Fund revenue increase.
    • Cost increases are likely administrative (implementation, oversight) but are characterized as minor.
    • Revenue increases are expected from additional court filing fees tied to civil actions.
  • Judicial/civil enforcement: The fiscal notes state the bill “may increase the number of civil suits filed in the court system.” The estimated increase is minimal and does not require additional judicial funding at this time.

Who Would Be Affected

  • Businesses and service providers that use AI in consumer-facing roles (retailers, platforms, call centers, online services, etc.) — they would be required to provide whatever disclosures or transparency measures the law prescribes.
  • Consumers — would receive greater information about when and how AI is used in transactions.
  • Courts and the judiciary — may see a small uptick in civil cases related to alleged noncompliance.
  • State General Fund — small net fiscal effects (minor costs and minor increases in filing-fee revenue).

Procedural / Timeline Notes

  • Referred to Health Coverage, Insurance and Financial Services on April 17, 2025.
  • Committee activity and work session in May 2025; reported Out “OTP‑AM.”
  • Passed both chambers as amended (Committee Amendment “A” (H‑544)) and signed by the Governor on June 12, 2025. The law is now enacted.

Limitations / Next Steps

The summary above reflects legislative actions and fiscal estimates available in public documents provided. The bill’s exact statutory requirements (definitions, specific disclosure language, scope, exemptions, enforcement mechanisms, penalties, compliance timelines) were not included in the materials supplied here. If you want a line‑by‑line summary of obligations and legal text, please provide the bill’s full enrolled or enacted language and I will produce a more detailed, provision‑level summary.

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

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