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HB 3021

CONSUMER FRAUD-AI DECEPTION

104th Regular Session Introduced by Kam Buckner and 3 co-sponsors

Requires clear, conspicuous disclosure when chatbots or generative AI are used in consumer interactions, unless obvious to the consumer they’re not human.

House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
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Bill Summary · HB 3021

Summary — HB 3021 (CONSUMER FRAUD — AI DECEPTION)

Status: House Floor Amendment No. 1 (Rule 19(c)); re‑referred to Rules Committee
Introduced: February 19, 2025
Effective date (if enacted): January 1, 2026
Companion bill: SB 1644

Purpose

To prohibit businesses from using chatbots or generative artificial intelligence in commercial interactions with consumers without giving a clear, conspicuous notice when the consumer might reasonably believe they are communicating with a human. The bill amends the Illinois Consumer Fraud and Deceptive Business Practices Act to treat failure to disclose such AI interactions as an unlawful practice.

Key provisions

  • Adds Section 2HHHH to the Consumer Fraud Act establishing an unlawful practice where a person uses a chatbot in a commercial transaction and:
    1. The consumer is interacting with a chatbot (textual or aural conversation);
    2. The interaction may mislead a reasonable consumer into believing they are communicating with a human; and
    3. The consumer is not notified in a clear and conspicuous manner that they are communicating with a chatbot and not a human representative.
  • Requires disclosures to be “clear and conspicuous” and “reasonably designed” to inform consumers they are interacting with a chatbot.
  • The bill references statutory definitions: “artificial intelligence” and “generative artificial intelligence” as defined in Section 2‑101 of the Illinois Human Rights Act; “chatbot” is defined as a generative AI system that simulates conversation via text or voice.
  • The amendment text indicates (and appears intended to provide) that a disclosure is not required where it would be obvious to a reasonable consumer that they are interacting with a chatbot.

Who is affected

  • Businesses and persons engaging in commercial transactions or trade practices with Illinois consumers that use chatbots or generative AI for conversational interfaces (customer service chat, voice assistants, virtual agents, etc.).
  • Consumers interacting with such systems will receive required notice in specified circumstances.

Enforcement and remedies

  • Violations are unlawful practices under the Consumer Fraud Act and are subject to the Act’s enforcement mechanisms and remedies (e.g., Attorney General enforcement, injunctions, consumer restitution, and private actions under the Act).

Legislative status / timeline highlights

  • Filed/Introduced Feb 2025; assigned to Consumer Protection Committee; public hearing April 9, 2025.
  • Committee substitute reported favorably (as substituted) April 16, 2025.
  • House Floor Amendment No. 1 filed April 7, 2025; referred to Rules Committee April 11, 2025.
  • If enacted, becomes effective January 1, 2026.

Note: The provided amendment text included some typographical/formatting errors. The summary reflects the apparent intended meaning of the amended language (notifying consumers when conversational generative AI is used, except where it would be obvious).

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

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