Minor AI Companion Safety and Transparency Act

This Act applies to any person or entity that offers a companion artificial intelligence chatbot service to users under the age of 18 in the United States, where such service is provided through interstate commerce. A companion AI chatbot is defined as a software application that simulates human-like conversation and is marketed or designed to provide emotional support, friendship, or romantic interaction. Section 2: Data Privacy and Parental Consent. Providers must obtain verifiable parental consent before collecting, using, or sharing personal information from users under 13, consistent with the Children's Online Privacy Protection Act (COPPA). For users aged 13 to 17, providers must clearly disclose the nature of the AI interaction, including that the chatbot is not human, and must provide a mechanism for users to opt out of data collection for non-essential purposes. Section 3: Transparency Reports. Providers must publish annual transparency reports detailing the number of minor users, the types of data collected, and any incidents of harmful interactions reported. These reports must be submitted to the Federal Trade Commission (FTC). Section 4: Prohibition on Deceptive Practices. It is an unfair or deceptive act or practice under Section 5 of the FTC Act for a provider to misrepresent the chatbot as human or to use manipulative design patterns to encourage excessive use by minors. Section 5: Enforcement. The FTC shall enforce this Act through civil penalties of up to $50,000 per violation, with a maximum of $1,000,000 per year per provider. The FTC may also seek injunctive relief. No private right of action is created. Section 6: Funding. The FTC shall assess a fee on providers of companion AI chatbots, not to exceed 0.1% of annual revenue from such services, to cover enforcement costs. Fees shall be deposited into a dedicated fund. Section 7: Sunset. This Act shall sunset 5 years after enactment, unless reauthorized by Congress. Section 8: Effective Date. This Act takes effect 180 days after enactment.