Relates to a prohibition on chatbot toys

2025 Regular Session Introduced by Andrew Gounardes

Bans manufacturing, distributing, or selling chatbot toys in New York for five years, with strict enforcement and penalties up to $15,000 per day for violations.

REFERRED TO CODES

Purpose and intent

Proposes a new New York state law to prohibit the manufacture, exchange, holding for sale, distribution, or sale of chatbot toys in New York.

The prohibition targets toys that embed or integrate an AI companion (chatbot) into a children's toy.

The bill includes a sunset provision: the prohibitions would expire and be repealed five years after the effective date, unless extended or renewed.

Key provisions and changes

New Article 48 added to the General Business Law: Prohibition on Chatbot Toys.

Definitions (Section 1800):

AI companion: as defined in another part of the General Business Law (referenced term).
Chatbot toy: an AI companion embedded in or integrated with a children's toy.
Children's toy: aligns with the federal standard for “children’s toy” (as defined in 15 U.S.C. § 2057c or successor).
User: a consumer of a chatbot toy who is not part of the manufacturing, selling, distributing, or providing entities.
Operator: any person or entity that operates or provides an AI companion in a children's toy (and includes successors, affiliates, subsidiaries, etc.).

Prohibition (Section 1801):

It is unlawful for any person, firm, corporation, association, partnership, or agent to manufacture, exchange, hold for sale, distribute, or sell a chatbot toy in New York.

Enforcement (Section 1802):

The New York Attorney General may bring an action to enjoin unlawful acts or practices.
Civil penalties can be up to $15,000 per day for each violation.
If the court finds a violation of the prohibition, no proof of injury is required to establish violation.
Preliminary relief may be granted under the Civil Practice Law and Rules (CPLR) Article 63.

Who would be affected

Manufacturers, distributors, retailers, and any other entities involved in creating, importing, marketing, or selling chatbot toys in New York.

The prohibition covers entities acting directly or through subsidiaries, affiliates, or other related business structures.

Consumers (users) are defined but are not themselves subject to penalties; enforcement focuses on entities that operate or provide AI companions in toys.

Procedural and timeline aspects

Effective date: The act takes effect on the 90th day after enactment.

Sunset: The provisions expire and are deemed repealed five years after the effective date, unless extended or renewed.

Immediate regulatory actions: The bill authorizes, on its effective date, the rapid adoption of rules or regulations necessary to implement the act (pilot capacity to comply with implementation timing).

Enforcement mechanism: Civil action by the Attorney General with potential injunctive relief and civil penalties; no proof of injury required to establish a violation.

Summary in brief

S. 9408-A would ban the manufacture and sale of chatbot toys in New York by prohibiting any entity from creating, distributing, or selling toys that embed an AI companion in a child’s toy. The measure defines key terms (AI companion, chatbot toy, child’s toy, user, operator) and empowers the state Attorney General to pursue civil enforcement with penalties up to $15,000 per day per violation. The law would take effect 90 days after enactment and would expire after five years, unless renewed. It also allows for necessary regulatory actions to implement the act immediately upon effective date.