Lawmakers in Dover are considering flawed legislation (HB 306) that could expose Delaware businesses to massive penalties over minor technical mistakes, even when no consumer was harmed or misled.
HB 306 would create sweeping new liability tied to chatbot interactions that don’t have a “clear and conspicuous” disclosure that it’s a chatbot. It would allow lawsuits with penalties reaching up to $10 million per chatbot interaction. Small and mid-size Delaware businesses could be hit hard by these excessive penalties. Worse, the proposed law wouldn’t even do anything to meaningfully protect consumers.
There are legitimate conversations to be had about AI and consumer protections, but this proposal goes too far. If passed, it could increase litigation, raise costs for businesses and consumers, and discourage innovation in Delaware.
Please review and send your message to state lawmakers urging them to oppose HB 306.