Senate Bill S9381

2023-2024 Legislative Session

Relates to liability for misleading, incorrect, contradictory or harmful information provided to a user by a chatbot

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Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2024	referred to internet and technology

2023-S9381 (ACTIVE) - Details

See Assembly Version of this Bill:: A10494
Current Committee:: Senate Internet And Technology
Law Section:: General Business Law
Laws Affected:: Add §390-f, Gen Bus L
Versions Introduced in 2025-2026 Legislative Session:: S5668, A222

2023-S9381 (ACTIVE) - Summary

Imposes liability for misleading, incorrect, contradictory or harmful information to a user by a chatbot that results in financial loss or other demonstrable harm.

2023-S9381 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9381

SPONSOR: GONZALEZ
 
TITLE OF BILL:

An act to amend the general business law, in relation to liability for
false information provided by a chatbot

 
PURPOSE:

This bill would amend the general business law, to assign liability for
the actions of chatbots to the proprietors of such chatbots.

 
SUMMARY OF PROVISIONS:

Section 1. Amends the general business taw by adding a new section
390-f, which sets forth requirements for liability of the proprietors of
chatbots.

Subsection 1 defines the terms "chatbot" and "proprietor".

Subsection 2(a) provides that a proprietor using a chatbot as an alter-

native to a human representative may not disclaim liability for mate-
rially misleading, incorrect, contradictory, or harmful information. A
proprietor may avoid liability by correcting the information and curing
the harm within 30 days.

Subsection 2(b) provides that a proprietor is responsible for ensuring
the chatbot provides information that is consistent with formal poli-
cies, product details, disclosures, and terms of service to consumers.

Subsection 2(c) provides that a proprietor may not disclaim liability by
disclosing to consumers that they are interacting with a non-human chat-
bot.

Subsection 3 provides that a proprietor using a chatbot must provide
notice to users that that they are interacting with an Al chatbot rather
than a human representative.

Section 2. This act shall take effect on the ninetieth day after becom-
ing a taw.

 
JUSTIFICATION:

With the growing capability and broadening availability of Al-powered
large language models, there is an accelerating trend of companies
deploying public-facing chatbots that seem like human representatives.
While these applications may offer a cost-saving function for business
enterprises, numerous instances of Al-powered chatbots giving incorrect
information have come to tight. Incorrect responses like these greatly
deteriorate the customer service experience. Examples include an airline
giving incorrect information about bereavement fares, a government agen-
cy giving incorrect information about the law, and a car dealership
"agreeing to" a $1 sale of a new vehicle.

This bill will hold the proprietors of chatbots liable for the misbehav-
ior of their products, while allowing an opportunity for cure if the
proprietor can correct the information and remedy any harm caused by the

provision of incorrect information. Proprietors will also be required to
disclose to users that they are interacting with an Al chatbot program.

This bill will motivate proprietors to be more careful when designing
their chatbot products and will motivate end users to be more skeptical
of chatbots and vigilant of erroneous information they may provide.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall become
law.

2023-S9381 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9381
 
                             I N  S E N A T E
 
                               May 14, 2024
                                ___________
 
 Introduced  by Sen. GONZALEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general business law, in relation to  liability  for
   false information provided by a chatbot
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new section
 390-f to read as follows:
   § 390-F. LIABILITY FOR CHATBOT RESPONSES. 1. AS USED IN  THIS  SECTION
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "CHATBOT"  SHALL MEAN AN ARTIFICIAL INTELLIGENCE SYSTEM, SOFTWARE
 PROGRAM, OR TECHNOLOGICAL APPLICATION THAT SIMULATES HUMAN-LIKE  CONVER-
 SATION  AND  INTERACTION  THROUGH  TEXT  MESSAGES,  VOICE COMMANDS, OR A
 COMBINATION THEREOF TO PROVIDE INFORMATION AND SERVICES TO USERS.
   (B) "PROPRIETOR" REFERS TO ANY PERSON,  BUSINESS,  COMPANY,  ORGANIZA-
 TION,  INSTITUTION  OR GOVERNMENT ENTITY OPERATING WITH MORE THAN TWENTY
 EMPLOYEES THAT OWNS, OPERATES OR DEPLOYS A CHATBOT SYSTEM USED TO INTER-
 ACT WITH USERS. PROPRIETORS SHALL  NOT  INCLUDE  THIRD-PARTY  DEVELOPERS
 THAT LICENSE THEIR CHATBOT TECHNOLOGY TO A PROPRIETOR.
   2.  (A)  A  PROPRIETOR  OF A CHATBOT USED AS AN ALTERNATIVE TO A HUMAN
 REPRESENTATIVE, OR OTHERWISE AS AN AGENT OF THE  PROPRIETOR  TO  PROVIDE
 ANY  SUBSTANTIVE  RESPONSE,  INFORMATION, ADVICE, OR ACTION ON BEHALF OF
 THE PROPRIETOR MAY NOT DISCLAIM LIABILITY OF ANY KIND  WHERE  A  CHATBOT
 PROVIDES  MATERIALLY  MISLEADING,  INCORRECT,  CONTRADICTORY  OR HARMFUL
 INFORMATION TO A USER THAT RESULTS IN FINANCIAL LOSS OR OTHER DEMONSTRA-
 BLE HARM TO THE USER; PROVIDED, HOWEVER, THAT NO SUCH LIABILITY SHALL BE
 IMPOSED WHERE THE PROPRIETOR HAS CORRECTED THE INFORMATION AND  SUBSTAN-
 TIALLY  OR  COMPLETELY  CURED THE HARM TO THE USER WITHIN THIRTY DAYS OF
 NOTICE OF SUCH HARM.
   (B) THE PROPRIETOR OF A CHATBOT SHALL BE RESPONSIBLE FOR ENSURING SUCH
 CHATBOT ACCURATELY PROVIDES INFORMATION ALIGNED WITH  THE  FORMAL  POLI-
 CIES,  PRODUCT  DETAILS,  DISCLOSURES  AND  TERMS  OF SERVICE OFFERED TO
 USERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15593-01-4

 S. 9381                             2
 
   (C) A PROPRIETOR MAY NOT WAIVE OR DISCLAIM THIS  LIABILITY  MERELY  BY
 NOTIFYING  CONSUMERS  THAT THEY ARE INTERACTING WITH A NON-HUMAN CHATBOT
 SYSTEM.
   3. PROPRIETORS UTILIZING CHATBOTS SHALL PROVIDE CLEAR, CONSPICUOUS AND
 EXPLICIT  NOTICE  TO  USERS THAT THEY ARE INTERACTING WITH AN ARTIFICIAL
 INTELLIGENCE CHATBOT PROGRAM RATHER THAN  A  HUMAN  REPRESENTATIVE.  THE
 TEXT OF THE NOTICE SHALL APPEAR IN THE SAME LANGUAGE AND IN A SIZE EASI-
 LY  READABLE  BY THE AVERAGE VIEWER AND NO SMALLER THAN THE LARGEST FONT
 SIZE OF OTHER TEXT APPEARING ON THE WEBSITE  ON  WHICH  THE  CHATBOT  IS
 UTILIZED.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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Senate Bill S9381

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Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

Actions

2023-S9381 (ACTIVE) - Details

2023-S9381 (ACTIVE) - Summary

2023-S9381 (ACTIVE) - Sponsor Memo

2023-S9381 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Kristen Gonzalez

Archive: Last Bill Status - In Senate Committee Internet And Technology Committee

Actions

2023-S9381 (ACTIVE) - Details

2023-S9381 (ACTIVE) - Summary

2023-S9381 (ACTIVE) - Sponsor Memo

2023-S9381 (ACTIVE) - Bill Text download pdf

Comments