Bill
S 4199
Requires clear AI disclosures to minors, bans targeted data use for personalization, and restricts design features and advertising to curb manipulation by youth AI chatbots.
Purpose
- Establishes safety, privacy, and behavioral safeguards for AI chatbots when used by minors.
- Aims to reduce risks from anthropomorphism, manipulative design, covert advertising, and invasive data practices in youth interactions with AI chatbots.
- Creates a framework for standard disclosures, data use limitations, enforcement, and research on health impacts.
Key Provisions and Changes
1) Safe Design Features and disclosures
- For deployers who know a user is a minor:
- Must disclose that the user is interacting with AI and that content is AI-generated.
- Disclosures must be clear, age-appropriate, and appear at the start of every session and at least every 30 minutes, with language suitability determined by the Commission.
- Disclosures are required to be tailored to the medium.
2) Data Processing and Output Restrictions
- Within one year of enactment, the Federal Trade Commission (FTC) must issue regulations prohibiting processing of a minor’s personal data to generate or personalize outputs, unless:
- Data was collected in the current session and within the maximum period of use allowed by the FTC.
- The maximum period of use is set by the FTC in regulations.
- Prohibits features that encourage compulsive use (within one year):
- Rewards, incentives, or badges tied to use or engagement.
- Non-disclosed push notifications or alerts beyond required disclosures.
- Visual indicators or “typing” indicators that mimic human interaction.
- Outputs generated without user input or solicitation.
3) Advertising, Profiling, and Training Restrictions
- Prohibits advertising or endorsements to minors if affected by a financial connection between the deployer/developer and the seller.
- Prohibits processing personal data for profiling minors.
- Prohibits processing or transferring minor data to train a covered algorithm, with limited exceptions for:
- Testing/identifying risks of harm, or addressing identified risks.
4) Input Data Handling
- Beginning 30 days after FTC rulemaking, deployers cannot process a minor’s input data for purposes other than:
- Generating or personalizing outputs within the current session's permitted use.
- Testing or addressing risks of harm.
5) Enforcement and Private Right of Action
- FTC enforcement for violations, with authority mirroring the FTC Act.
- State attorneys general may bring civil actions in federal court on behalf of residents (parens patriae) with notice and possible intervention by the FTC.
- Private right of action for parents or legal guardians against deployers/developers for violations, with damages and injunctive relief available.
6) Whistleblower Protections
- Prohibits retaliation against individuals who raise concerns or participate in investigations related to this Act.
7) Research and Data Collection
- Amends existing mental health and well-being law to authorize appropriations ($50 million annually for FY2027–2030) to study health and developmental effects of AI chatbots on minors.
- Requires integration of AI chatbot questions into national health and behavioral surveys (Household Pulse Survey, YRBS), covering usage frequency, types of chatbots, age of first use, emotional/behavioral impacts, and exposure to harmful content.
8) Knowledge of Minor Status
- Establishes rules for determining when a deployer’s knowledge is fairly implied that a user is a minor, based on objective circumstances.
- Commission guidance to assist deployers, without creating new rights or binding obligations beyond enforcement under the Act.
9) Definitions
- Provides detailed definitions for AI chatbot, collect, deployment, developer, input data, output, personal data, profiling, publicly available information, derived data, and other related terms.
10) Preemption and State Law
- Act preempts conflicting state law but allows states to enact stronger protections.
11) Rulemaking and Guidance
- FTC to issue rules under the Administrative Procedure Act to implement the Act’s provisions.
- Guidance on minor knowledge determinations to be issued within 180 days of enactment.
Projected Impact and Scope
Dates and Status (as introduced)
- Introduced: March 25, 2026
- Committee: Commerce, Science, and Transportation
- Action history indicates pending committee reporting with amendments, and potential favorable report with substitute in progress.
Compiled from official sources — confirm details with the bill’s official record.
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