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HB 425

CONSUMERS/PROTECTION: Provides for consumer protection practices for customers engaging with artificial intelligence (OR SEE FISC NOTE GF EX)

2026 Regular Session Introduced by Mandie Landry

Louisiana HB 425 bans deceptive AI interactions in commerce, requiring clear disclosure when customers interact with automated systems and allowing consumer lawsuits and penalties

Read by title, under the rules, referred to the Committee on Commerce.
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Bill Summary · HB 425

Louisiana HB 425 (2026 Session) — Consumer Protection: Artificial Intelligence Interactions

Purpose and intent

  • Establishes consumer protection provisions specific to interactions between consumers and automated systems powered by artificial intelligence (AI), including chatbots, AI agents, avatars, and similar technologies.
  • Aims to prevent unfair or deceptive trade practices when a consumer engages with automated systems in commercial transactions in Louisiana.

Key definitions

  • Automated system: A chatbot, AI agent, avatar, or other computer technology that engages in textual or aural conversation and may mislead a reasonable person into thinking they are interacting with a human.

Core prohibitions (what would be illegal)

  • It is an unfair or deceptive trade practice for a business to:
    • Engage in a commercial transaction or trade practice with a Louisiana consumer when the consumer is interacting with an automated system and either: 1) The consumer is not clearly and conspicuously notified that they are interacting with an automated system rather than a human; or 2) The consumer may reasonably believe they are engaging with a human.

Enforcement mechanisms and remedies

  • Civil action by the consumer: A consumer subjected to such a practice may file a civil lawsuit against the business (corporation, organization, or person) involved.
  • Damages to the consumer:
    • Actual damages sustained due to the violation, plus statutory damages up to $1,000.
    • In a class action, the court may determine the amount for the class, up to a total cap of $10 million.
  • Injunctive relief: The Louisiana Attorney General may seek injunctive relief to halt noncompliant practices.
  • Civil penalties: A court may impose a civil penalty not exceeding $5 million for violations.

Who is affected

  • Businesses, organizations, or individuals engaging in commercial transactions with Louisiana consumers through automated systems.
  • Consumers in Louisiana who interact with AI-driven or automated customer service tools during transactions.

Procedural and timeline aspects

  • Bill status and actions:
    • Read by title and referred to the Committee on Commerce (March 9, 2026).
    • Previously provisionally referred to the Committee on Commerce (February 25, 2026).
  • Adds a new section to the Louisiana Revised Statutes: R.S. 51:1430.

Additional notes

  • The bill emphasizes transparency about the nature of the interaction (human vs. automated) and protects consumers from deceptive presentation of AI-driven interactions in commercial contexts.
  • If enacted, the law would create a private right of action for consumers and a broad potential civil penalty framework for noncompliant entities.

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

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