Consumer Protection and Product Liability - Chatbots

SB 827 regulates chatbot design, operation, and safety in Maryland, directly affecting chatbot developers, operators (like companies offering AI assistants), and all users - including minors. Key provisions require clear warnings before use, enhanced privacy protections for minors, strict rules for handling user data (including de-identifying personal information), and treating chatbots as "products" for liability claims. Violations are enforced as unfair trade practices under Maryland’s Consumer Protection Act, with additional penalties. The bill also mandates the Behavioral Health Administration to create educational materials about behavioral health services.