Chatbots built to seem human — speaking in the first person, voicing feelings, remembering personal details and sometimes claiming to be real people or licensed therapists — are now at the center of product-liability lawsuits against Character.AI and OpenAI. At least eight U.S. states, the European Union and China have written rules for them.
| Jurisdiction | Law | What it requires | In effect |
|---|---|---|---|
| California | SB 243 | A clear notice that a companion chatbot is AI and not human whenever a reasonable person could be misled; break reminders at least every three hours for known minors; a published suicide and self-harm protocol. Users can sue for $1,000 per violation. | Jan. 1, 2026 |
| California | AB 489 | AI may not use terms or phrases suggesting that care comes from a licensed health professional. | Jan. 1, 2026 |
| California | SB 1119 | Age assurance, protective defaults for minors including limits on persistent memory, and liability for failing to prevent romantic roleplay or emotionally manipulative outputs with minors. | Jan. 1, 2027 |
| New York | General Business Law Art. 47 | AI companions must tell every user they are not talking to a human at the start of a session and every three hours, and must have a crisis-referral protocol. Enforced by the attorney general. | Nov. 5, 2025 |
| Oregon | SB 1546 | Notice that the user is talking to AI, plus reasonable steps to keep companions from making statements that would lead a reasonable person to believe they are talking to a person. Includes a private right of action. | Jan. 1, 2027 |
| Washington | ESHB 2225 | Disclosure that the chatbot is not human and added protections for minors, enforced under the state consumer protection act. | Jan. 1, 2027 |
| Nebraska | LB 525 | AI disclosure, a suicide protocol, and no claims to provide professional mental or behavioral health care. | July 1, 2027 |
| Nevada | AB 406 | AI may not be represented as able to provide professional mental health care, and no avatar or feature may be presented as a therapist, psychiatrist or doctor. Up to $15,000 per violation. | July 1, 2025 |
| Illinois | HB 1806 | AI may not provide therapy or make therapeutic decisions; administrative support only. Up to $10,000 per violation. | Aug. 1, 2025 |
| Utah | HB 452 | Mental-health chatbots must disclose that they are AI before first use and when asked. | May 7, 2025 |
| European Union | AI Act, Art. 50(1) | AI systems that interact with people must be designed so people are told they are dealing with AI, unless that is obvious. | Aug. 2, 2026 |
| China | CAC rules on “anthropomorphic interaction services” | AI disclosure, a break reminder after two hours of continuous use, no inducing dependence, and no virtual romantic partners or relatives for minors. | July 15, 2026 |
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Anthropomorphic AI is an AI system designed to come across as human: it speaks in the first person, expresses emotions and opinions, remembers personal details, uses human-sounding voices or avatars, and in some cases claims to be a real person. The term comes from anthropomorphism, the human tendency to attribute thoughts and feelings to non-human things.
No U.S. law bans every human-sounding chatbot, but several states now limit it. California and New York require companion chatbots to disclose that they are not human, Oregon requires operators to take reasonable steps to keep companions from making statements that would lead a reasonable person to believe they are talking to a person, and Nevada, Illinois and California restrict AI that presents itself as a licensed therapist or health professional. The EU AI Act also requires disclosure when it is not obvious.
At the pleading stage, yes. In May 2025 a federal judge in Florida let product-liability and deceptive-practices claims against Character.AI proceed, describing its characters as anthropomorphic and finding the complaint adequately alleged harm from the company's anthropomorphic design decisions. That case settled in principle in January 2026 before any trial or final ruling on the merits.
California, New York, Oregon, Washington and Nebraska have enacted laws aimed at companion chatbots, and Nevada, Illinois and Utah regulate mental-health chatbots or AI that presents itself as a therapist. Some take effect in 2027. Several more states passed chatbot laws in 2026.
Not yet. The FTC opened a study of AI companion chatbots in September 2025, and the Senate Judiciary Committee reported the GUARD Act in May 2026, which would require chatbots to disclose that they are not human or licensed professionals and bar minors from AI companions. It has not passed the full Senate.