SB 317

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Full Text of SB0317
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	SB0317 - 104th General Assembly
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			Senate Amendment 001
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		Introduced
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		Senate Amendment 001
		Senate Amendment 002
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		SB0317 Engrossed		LRB104 06436 SPS 16472 b
1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Consumer Artificial Intelligence Notice Act.
6    Section 5. Definitions. As used in this Act:
7    "Conversational customer service artificial intelligence
8system" means a product that:
9        (1) uses "artificial intelligence" as defined in
10    Section 2-101 of the Illinois Human Rights Act; and
11        (2) engages in real-time, interactive text-based or
12    voice-based conversation directly with a consumer through
13    a chat, messaging, or voice interface.
14    "Conversational customer service artificial intelligence
15system" does not include internal business operations,
16marketing, pricing, analytics activities, or other
17transactions that do not involve a direct, real-time
18interaction between the person and the consumer.
19    "Chat interface" means an online interface that allows a
20consumer to exchange real-time, interactive text messages or
21voice communications with a conversational artificial
22intelligence system.
23    "Clear and conspicuous" means that the disclosure appears
		SB0317 Engrossed	- 2 -	LRB104 06436 SPS 16472 b
1as a separate message, either verbally or in writing, in the
2language that the user is interacting and communicating with
3the conversational customer service artificial intelligence
4system at the beginning of the interaction in at least the same
5font size and color as the consumer's messages if the
6disclosure is in writing or in a manner that clearly calls
7attention to the verbal disclosure.
8    "Product" means any tangible object or goods distributed
9in commerce, including any service provided in connection with
10the product.
11    Section 10. Requirements. A person who uses a
12conversational customer service artificial intelligence system
13in a chat interface to communicate with a consumer shall
14provide the consumer with a clear and conspicuous disclosure
15that the consumer is communicating with an automated system
16and not with a human.
17    Section 15. Application.
18    (a) Nothing in this Act shall be construed to:
19        (1) regulate the use of artificial intelligence that
20    does not interact directly with consumers through a chat
21    interface, including, but not limited to, artificial
22    intelligence used solely for internal analytics, fraud
23    detection, inventory management, pricing, or
24    recommendation systems, or other similar internal
		SB0317 Engrossed	- 3 -	LRB104 06436 SPS 16472 b
1    applications; or
2        (2) impose liability on a business entity for the
3    design or outputs of a conversational customer service
4    artificial intelligence developed or provided by a third
5    party if the business entity complies with the disclosure
6    requirements of this Act.
7    (b) The remedies provided by this Act are cumulative and
8do not preclude any other lawful civil, administrative, or
9criminal remedy available under State or federal law,
10including, but not limited to, product liability actions.
11    Section 20. Enforcement.
12    (a) The Attorney General or the State's Attorney of any
13county in this State may bring an action in the name of the
14People of this State against any person to restrain and
15prevent any pattern or practice in violation of Section 10.
16Any person that may be subject to an action for a violation of
17Section 10 shall be given at least 7 days advanced notice by
18the Attorney General or State's Attorney prior to the
19commencement of an action to enforce Section 10. The person
20receiving the notice shall have the opportunity to provide an
21assurance of voluntary compliance to the Attorney General or
22the State's Attorney and the Attorney General or the State's
23Attorney may accept the assurance when submitted. The failure
24to perform the terms of the assurance constitutes prima facie
25evidence of a violation of Section 10.
		SB0317 Engrossed	- 4 -	LRB104 06436 SPS 16472 b
1    (b) A violation of Section 10 constitutes an unlawful
2practice under the Consumer Fraud and Deceptive Business
3Practices Act. All remedies, penalties, and authority granted
4to the Attorney General or the State's Attorney by the
5Consumer Fraud and Deceptive Business Practices Act shall be
6available to the Attorney General or the State's Attorney for
7the enforcement of Section 10.
8    Section 25. Action for actual damages. Any person who
9suffers actual damage as a result of a violation of Section 10
10may bring an action under Section 10a of the Consumer Fraud and
11Deceptive Business Practices Act.
12    Section 30. Home rule. The regulation of disclosures
13related to the use of artificial intelligence in commercial
14communications with consumers is an exclusive power and
15function of the State. A home rule unit may not regulate
16disclosures related to the use of artificial intelligence in
17commercial communications with consumers. This Section is a
18denial and limitation of home rule powers and functions under
19subsection (h) of Section 6 of Article VII of the Illinois
20Constitution.
21    Section 900. The Consumer Fraud and Deceptive Business
22Practices Act is amended by adding Section 2MMMM as follows:
		SB0317 Engrossed	- 5 -	LRB104 06436 SPS 16472 b
1    (815 ILCS 505/2MMMM new)
2    Sec. 2MMMM. Violations of the Consumer Artificial
3Intelligence Notice Act. Any person who violates Section 10 of
4the Consumer Artificial Intelligence Notice Act commits an
5unlawful practice within the meaning of this Act.