H.R. 7985

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7985 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7985

To prohibit the marketing, advertising, or provision of professional 
services without the appropriate licenses, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 18, 2026

Mr. Mullin (for himself, Ms. Matsui, Mrs. Dingell, Mr. Soto, Ms. Tlaib, 
Ms. McClellan, and Ms. Schrier) introduced the following bill; which 
was referred to the Committee on Energy and Commerce

_______________________________________________________________________

A BILL

To prohibit the marketing, advertising, or provision of professional 
services without the appropriate licenses, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Curbing Harmful AI Tools By Offering 
Transparency Act'' or the ``CHATBOT Act''.

SEC. 2. AI CHATBOT TRANSPARENCY.

(a) Prohibition; Requirement.--
(1) In general.--A covered entity may not provide the 
generation of output from an AI chatbot, or disseminate 
marketing or advertising materials, that, from the perspective 
of a reasonable user--
(A) indicate or imply possession of an appropriate 
license to practice a covered profession without, at 
that time, the possession of such license; and
(B) falsely indicate or imply that the output is 
provided or verified by a human in possession of an 
appropriate license to practice a covered profession.
(2) Imply defined.--For purposes of paragraph (1)(A), the 
term ``imply''--
(A) means a representation that a reasonable user 
would understand as claiming possession of a 
professional license, including a statement about 
credentials, qualifications, fictitious professional 
experience, or authoritative and conclusive 
recommendations, advice, or guidance that a reasonable 
user would understand is typically only provided by a 
practitioner of a covered profession; and
(B) does not include providing general information, 
procedural guidance not specific to the circumstance of 
the user, or informative content that does not 
represent or suggest licensure.
(b) Guidance.--Not later than 12 months after the date of the 
enactment of this section, the Commission, in consultation with 
relevant agencies and stakeholders, including consumer advocacy 
organizations and technology experts, shall provide guidance on 
complying with the requirements of this section.
(c) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices.--A violation of 
subsection (a) or a regulation promulgated under such 
subsection shall be treated as a violation of a regulation 
under section 18(a)(1)(B) of the Federal Trade Commission Act 
(15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices.
(2) Powers of commission.--The Federal Trade Commission 
shall enforce subsection (a) and a regulation promulgated under 
such subsection in the same manner, by the same means, and with 
the same jurisdiction, powers, and duties as though all 
applicable terms and provisions of the Federal Trade Commission 
Act (15 U.S.C. 41 et seq.) were incorporated into and made a 
part of this section. Any person who violates subsection (a) or 
a regulation promulgated under such subsection shall be subject 
to the penalties and entitled to the privileges and immunities 
provided in the Federal Trade Commission Act. Nothing in this 
Act may be construed to limit the authority of the Commission 
under any other provision of law.
(d) Actions by States.--
(1) In general.--In any case in which the attorney general 
of a State, or an official or agency of a State, has reason to 
believe that an interest of the residents of such State has 
been or is threatened or adversely affected by an act or 
practice in violation of subsection (a) or a regulation 
promulgated under such subsection, the State, as parens 
patriae, may bring a civil action on behalf of the residents of 
the State in an appropriate district court of the United States 
to--
(A) enjoin such act or practice;
(B) enforce compliance with this subsection (a) or 
a regulation promulgated under such subsection;
(C) obtain damages for actual monetary loss from 
the violation or up to $5,000 in damages for each such 
violation, whichever is greater, on behalf of residents 
State; or
(D) obtain such other legal and equitable relief as 
the court may consider to be appropriate.
(2) Notice.--Before filing an action under this subsection, 
the attorney general, official, or agency of the State involved 
shall provide to the Federal Trade Commission a written notice 
of such action and a copy of the complaint for such action. If 
the attorney general, official, or agency determines it is not 
feasible to provide the notice described in this paragraph 
before the filing of the action, the attorney general, 
official, or agency shall provide written notice of the action 
and a copy of the complaint to the Federal Trade Commission 
immediately upon the filing of the action.
(3) Authority of the federal trade commission.--
(A) In general.--On receiving notice under 
paragraph (2) of an action under this subsection, the 
Federal Trade Commission shall have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on 
all matters arising therein; and
(iii) to file petitions for appeal.
(B) Limitation on state action while federal action 
is pending.--If the Federal Trade Commission or the 
Attorney General of the United States has instituted a 
civil action for violation of this subsection (a) or a 
regulation promulgated under such subsection (referred 
to in this subparagraph as the ``Federal action''), no 
State attorney general, official, or agency may bring 
an action under this subsection during the pendency of 
the Federal action against any defendant named in the 
complaint in the Federal action for any violation of 
such regulation alleged in such complaint.
(C) Rules of construction.--
(i) State authority.--For purposes of 
bringing a civil action under this subsection, 
nothing in this Act may be construed to prevent 
an attorney general, official, or agency of a 
State from exercising the powers conferred on 
the attorney general, official, or agency by 
the laws of such State to conduct 
investigations, administer oaths and 
affirmations, or compel the attendance of 
witnesses or the production of documentary and 
other evidence.
(ii) Preservation of state authority.--
Nothing in this Act may be construed to 
preempt, limit, or otherwise affect or restrict 
the application of any State law, rule, 
regulation, requirement, or standard that 
provides a user with greater or additional 
rights, remedies, or protections than the 
rights, remedies, and protections provided 
under this Act, including any State law, rule, 
requirement, or standard governing the 
licensing, regulation, or discipline of a 
covered profession regulated under State law, 
including enforcement actions for the 
unlicensed practice of such profession.
(e) Private Right of Action.--
(1) In general.--A person injured by an act or practice in 
violation of subsection (a) or a regulation promulgated under 
such subsection may bring in an appropriate district court of 
the United States--
(A) an action to enjoin the violation;
(B) an action to recover damages for actual 
monetary loss from the violation, or to receive up to 
$5,000 in damages for each such violation, whichever is 
greater; or
(C) both such actions.
(2) Willful or knowing violations.--If the court finds that 
the defendant acted willfully or knowingly in committing a 
violation described in paragraph (1), the court may, in its 
discretion, increase the amount of the award to an amount equal 
to not more than 3 times the amount available under paragraph 
(1)(B).
(3) Costs and attorney's fees.--The court shall award to a 
prevailing plaintiff in an action under this subsection the 
costs of such action and reasonable attorney's fees, as 
determined by the court.
(4) Limitation.--An action may be commenced under this 
subsection not later than 5 years after the date on which the 
person first discovered or had a reasonable opportunity to 
discover the violation.
(5) Nonexclusive remedy.--The remedy provided by this 
subsection shall be in addition to any other remedies available 
to the person.
(f) Adjustment for Inflation for Civil Penalties and Damages.--
Beginning on the date that the Consumer Price Index is first published 
by the Bureau of Labor Statistics that is at least 1 year after the 
date of the enactment of this Act, and each year thereafter, the amount 
specified in subsections (d)(1)(C) and (e)(1)(B) shall be increased by 
the percentage increase, if any, in the Consumer Price Index published 
on such date from the Consumer Price Index published the previous year.
(g) Definitions.--In this section:
(1) Appropriate license.--The term ``appropriate license'' 
means a permit or authorization required to practice a covered 
profession, as determined by the State in which the covered 
entity provides the service.
(2) AI chatbot.--The term ``AI chatbot'' means a system 
that uses artificial intelligence to engage in interactive 
conversations with a user similar to the communications that an 
individual would have with a human.
(3) Artificial intelligence; ai.--The term ``artificial 
intelligence'' or ``AI'' has the meaning given that term in 
section 9401 of the National Artificial Intelligence Initiative 
Act of 2020 (15 U.S.C. 9401).
(4) Commission.--The term ``Commission'' means the Federal 
Trade Commission.
(5) Covered entity.--The term ``covered entity'' means an 
individual or company that deploys an AI chatbot.
(6) Covered profession.--The term ``covered profession'' 
means a profession that does any of the following:
(A) Operates in the finance and insurance sector 
(as defined in NAICS Code 52).
(B) Operates in the health care and social 
assistance sector (as defined in NAICS Code 62).
(C) Provides legal services (as defined in NAICS 
code 5411).
(D) Provides accounting, tax preparation, 
bookkeeping, and payroll services (as defined in NAICS 
code 5412).
(7) State.--The term ``State'' means each of the several 
States, the District of Columbia, each commonwealth, territory, 
or possession of the United States, and each federally 
recognized Indian Tribe.
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