An act relating to chatbot disclosure requirements

Vermont's H.783 requires businesses to clearly disclose when consumers interact with a chatbot during commercial transactions, preventing reasonable confusion about speaking with a human. It directly affects companies using AI chatbots for customer service, sales, or other commercial interactions. The law mandates a "clear and conspicuous" notice before or during the conversation, defining chatbots broadly to include AI agents, avatars, and automated systems simulating human dialogue. Violations would be treated as unfair trade practices under existing consumer protection law, effective July 1, 2026.