Requires person or entity to notify certain consumers when communicating with generative artificial intelligence to engage in trade or commerce.

2026-2027 Regular Session Introduced by Sterley Stanley and 1 co-sponsor

Businesses deploying generative AI must clearly disclose at the start that the consumer is interacting with AI to avoid deceptive practice penalties.

Reported and Referred to Assembly Consumer Affairs Committee

Summary of Assembly Bill No. 4730 (Session 222, New Jersey)

Purpose and intent

Mandates clear disclosure when a consumer is interacting with generative artificial intelligence (AI) in the context of trade or commerce.

The goal is to ensure consumers know they are communicating with AI (as opposed to a human) at the start of an interaction, when such deception could lead a reasonable person to believe they are engaging with a human.

Key provisions and changes

Duty to disclose: Any person or entity that deploys generative AI to communicate or interact with a consumer must provide a clear and conspicuous notice that the consumer is interacting with generative AI.

Timing and form of notice: The notice must be given at the beginning of the interaction and can be verbal or written.

Scope: Applies when the AI interaction would cause a reasonable person to believe they are communicating with a human.

Enforcement and penalties:

Violation constitutes an unlawful practice under New Jersey’s Consumer Fraud Act.
First violation penalty: up to $10,000.
Subsequent violations: up to $20,000 each.
Additional enforcement tools under the Consumer Fraud Act may apply, including:
Cease-and-desist orders issued by the Attorney General.
Potential for punitive damages and treble damages (tripling of damages) and costs to the injured party.

Who or what would be affected

Businesses, advertisers, customer service providers, and any other entities that deploy generative AI to engage with consumers in trade or commerce.

The bill covers AI interactions that could be mistaken for human-to-human communication, prompting disclosure at the outset of the engagement.

Procedural and timeline aspects

Status: Reported favorably by the Assembly Science, Innovation and Technology Committee.

Next steps: Referred to the Assembly Consumer Affairs Committee for consideration.

Effective date: Not specified in the text provided; typically, if enacted, the bill would include a specific enforcement/implementation timeline in the final statute.

Practical impact and considerations

Aligns consumer transparency with emerging AI communications, potentially increasing trust and reducing deception concerns in AI-driven commerce.

Creates a clear legal risk framework for noncompliant practices through the Consumer Fraud Act, with notable monetary penalties and potential injunctive and damages remedies.

Businesses may need to implement or audit systems to ensure AI interactions include an upfront, easily noticeable disclosure when applicable.

If you’d like, I can tailor this summary to a specific audience (e.g., business owners, consumer advocates, or legal professionals) or add a comparison with related state or federal AI disclosure proposals.