Utah Cracks Down on AI Chatbot Deception to Protect Consumers
SALT LAKE CITY — Utah is taking steps to ensure consumers are protected in the rapidly evolving landscape of artificial intelligence. New consumer protection laws have been enacted to govern the actions of AI chatbots, particularly in consumer transactions. These regulations address an increasing number of interactions that are now mediated through AI.
One instance that highlights the necessity for these new protections involves Robert Brown and his home warranty. When his air conditioning unit failed, Brown sought a payout from his home warranty company. Initial communication with the company’s chatbot led Brown to believe he was approved for a $3,000 payout. Even if it was an unintended error, the chatbot was acting as the voice of the company, and Brown was led to believe he would receive the money.
When the payout failed to materialize, Brown contacted the company, only to learn the chatbot had made a mistake. According to Brown, a live representative informed him the AI system was “miscommunicating to a lot of people.” When the promised funds did not arrive, Brown was left in a difficult position.
“He said, ‘We’ve had this AI up for about a week and it’s really confusing and it’s miscommunicating to a lot of people,'” said Brown, recalling his conversation with a live company representative.
In Brown’s case, KSL’s investigative reporter, Matt Gephardt, was able to intervene, and the home warranty company ultimately issued a check. However, this experience underscored a larger need for consumer safeguards.
The new legislation, enforced by the state’s Division of Consumer Protection, includes important disclosure rules. Katie Hass, the division’s director, emphasized that “‘The chatbot did it,’ is not going to be an excuse when it comes to deceptive acts and practices in the State of Utah.”
The new rules require AI chatbots to reveal their identity when providing legal, financial, or medical advice. If a consumer feels deceived by a chatbot, they can file a report with the Utah Division of Consumer Protection at db.dcp.utah.gov/complaints.html. Companies found to violate these regulations face potential fines of up to $2,500 for each infraction.
These new protections are designed to ensure that consumers are not misled by AI-driven interactions. Utah continues to adapt to the growing presence of AI and make sure consumers are protected.
