AI Frontier Institute

CONSUMER FRAUD-AI DECEPTION

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Illinois HB3021, introduced by Rep. Abdelnasser Rashid, amends the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) by adding new Section 2HHHH. The bill makes it an unlawful trade practice for any person to engage in a commercial transaction with a consumer where: (1) the consumer is interacting with a chatbot, AI agent, avatar, or similar conversational technology; (2) the communication could mislead a reasonable consumer into believing they are speaking with a human; and (3) the consumer is not clearly and conspicuously notified that they are communicating with an AI system rather than a human. Notably, a violation occurs whether or not the consumer is actually misled, deceived, or damaged. The law is set to take effect January 1, 2026, per Section 99.

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