MD HB1250

Requires chatbot operators to obtain affirmative consent before using user input data for AI training, and prohibits using chat logs for targeted advertising or user profiling beyond what's needed to respond to prompts

Mandates clear warnings that chatbots are AI-generated (both static on-screen and pop-up warnings at session start, hourly, and when users ask how the chatbot works), with enhanced protections requiring parental consent for children under 13

Prohibits chatbots from providing licensed professional advice (financial, legal, medical) in violation of state licensing laws, and limits chat log retention to 10 years maximum

Establishes chatbots as "products" under product liability law, making developers and operators strictly liable for user harm, with individuals able to sue for design, manufacturing, or marketing defects and recover up to treble punitive damages for knowing violations

Requires monthly safety testing with public disclosure of findings, and directs civil penalties to the Behavioral Health Workforce Investment Fund; effective October 1, 2026