Consumer protection, use of a computer to interact with a consumer when consumer believes the interaction is with a human is an unlawful trade practice

HB 516 amends Alabama's consumer protection law to prohibit businesses from using computer interactions (like chatbots) that deceive consumers into believing they are communicating with a human. This directly affects businesses using automated customer service systems and protects consumers from being misled during commercial transactions. The bill adds a specific provision to the existing list of unlawful deceptive practices, making it illegal to design interactions that reasonably cause consumers to believe they are speaking with a person. It does not require businesses to identify AI interactions but bans the deceptive practice itself. The bill is currently pending review by the House Commerce and Small Business Committee.