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H 127

CONSUMER PROTECTION – Adds to existing law to establish provisions regarding disclosure of artificial intelligence communications.

68th Legislature, 1st Regular Session (2025)

Requires clear, conspicuous disclosure when AI handles consumer communications to prevent deception about human interaction.

Reported Printed and Referred to Business
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Bill Summary · H 127

Summary: Idaho House Bill 127 (H 127) – Disclosure of Artificial Intelligence Communications

Overview

House Bill 127 adds a new provision to Idaho’s consumer protection laws requiring clear disclosure when artificial intelligence (AI) is used in communications with consumers in trade or commerce. The measure aims to prevent deceptive practices by ensuring consumers know they are interacting with AI rather than a human.

  • Introduced: February 4, 2025
  • Current status: Reported Printed and Referred to Business (after initial referral by Judiciary, Rules and Administration)
  • Effective date: July 1, 2025 (emergency clause declared)

Purpose and Scope

  • Establishes that it is an unfair and deceptive trade practice to engage in AI-enabled communications with a consumer in a way that may mislead a reasonable consumer into thinking they are interacting with a human, unless the communication clearly and conspicuously discloses that it is AI-generated.
  • Applies to chatbots, AI agents, avatars, or other computer technologies that engage in textual or aural conversations beyond basic operational information.

Key Provisions

1) Disclosure Standard
- A consumer-facing interaction with AI must include clear, conspicuous notice that the communication is AI-generated.
- The conduct is deemed unfair and deceptive if:
- The consumer is not clearly notified that they are not engaging with a human, and
- The consumer may reasonably believe they are engaging with a human due to the lack of clear disclosure, and
- The AI is providing information beyond basic operations (e.g., beyond employee directories, hours, locations, basic purchasing mechanics).

2) Private Right of Action
- Consumers may sue for violations.
- Damages options:
- Actual damages (including the value of the consumer’s time spent resolving issues) or $1,000, whichever is greater.
- In a class action, damages may be awarded as authorized by the court, but not to exceed actual damages or $10,000.

3) Enforcement and Penalties
- The Attorney General may seek injunctive relief for noncompliance.
- A court may impose a minimum civil penalty of $10,000 and $1,000 per violation.

4) Attorneys’ Fees and Costs
- Prevailing party in actions under this section may recover reasonable investigative costs, other costs allowed by statute and rule, and reasonable attorney’s fees.

Affected Parties

  • Businesses and entities engaged in commerce that use AI to communicate with consumers (e.g., customer service chatbots, AI advisors, virtual assistants).
  • Consumers interacting with such AI-driven communications, who may seek damages or injunctive relief.

Fiscal Impact

  • The fiscal note indicates no net change in state or local revenue or expenditures; no anticipated fiscal impact.

Notes

  • The bill includes an emergency clause, making the act effective on July 1, 2025. The content reflects the source’s proposed statutory language and stated purpose as of introduction.

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

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