Consumer Protection and Product Liability - Chatbots

HB 1250 regulates how chatbots are designed, operated, and made available to users in Maryland. It requires developers and operators to obtain clear user permission before collecting data, display specific safety warnings (especially for minors), and follow strict privacy rules for handling personal information. The bill also treats chatbots as "products" for liability purposes, meaning users can pursue legal claims if chatbots cause harm, and mandates that state agencies develop educational materials about behavioral health services. These rules apply to all chatbots used in Maryland, including those operated by government entities.