AI Advertising Disclosure Act

The AI Advertising Disclosure Act requires companies operating AI chatbots and generative search features with over 50,000 monthly users to clearly disclose when their responses are influenced by paid partnerships or commercial arrangements. These disclosures must be visible without scrolling, use plain language, and identify the specific nature of the sponsorship, while also prohibiting AI systems from denying they are artificial or hiding sponsored content behind organic-looking answers. The bill grants the Federal Trade Commission authority to enforce these rules and allows state attorneys general and private individuals to sue for violations, with potential penalties including triple damages for willful misconduct.