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Bill

Bill

SB 164

Virginia Consumer Protection Act; prohibited practices, artificial intelligence disclosure.

2025 Regular Session Introduced by Bryce Reeves

SB 164 requires Virginia businesses to disclose AI use in consumer interactions and bans deceptive AI practices, strengthening consumer protections in an AI-driven economy.

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Bill Summary · SB 164

Legislative bill overview

SB 164 amends Virginia's Consumer Protection Act to require businesses to disclose when they use artificial intelligence in consumer interactions and decision-making. The bill prohibits deceptive AI practices and establishes enforcement mechanisms through the Virginia Attorney General's office.

Why is this important

As AI becomes increasingly integrated into consumer services—from chatbots to credit decisions—transparency requirements help consumers understand when they're interacting with automated systems versus humans. This addresses growing concerns about algorithmic bias, hidden automation, and consumer manipulation in an economy increasingly reliant on AI tools.

Potential points of contention

  • Business compliance burden: Companies may argue that mandatory AI disclosures create administrative costs and competitive disadvantages, particularly for smaller businesses integrating AI tools
  • Definitional ambiguity: "Artificial intelligence" lacks a precise statutory definition, potentially creating uncertainty about which business practices trigger disclosure requirements and encouraging broad or narrow interpretations during enforcement
  • Innovation chilling effect: Strict disclosure and prohibition requirements could discourage Virginia businesses from adopting AI tools or push AI development to less-regulated states

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

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