CHATBOT Act

The CHATBOT Act establishes new federal rules requiring companies that provide open-ended artificial intelligence chatbots to implement strict privacy protections and parental controls for users under the age of 18. Under this legislation, platforms must create "family accounts" for children under 13 and obtain verifiable parental consent before allowing teens to create their own accounts, while also mandating the deletion of personal data if these requirements are not met. The bill further requires that default settings on these accounts prioritize child safety by limiting screen time, disabling financial transactions, and preventing the chatbot from generating unsolicited outputs. Companies are prohibited from using the personal data of children and teens for targeted advertising, and the Federal Trade Commission is authorized to enforce these provisions as unfair or deceptive practices. Additionally, the Act mandates a study by the National Science Foundation on the social impacts of AI chatbots on young people and requires a report from the Government Accountability Office to evaluate the law's effectiveness.