MD SB827

Requires chatbot operators to obtain affirmative consent before using input data for AI training or processing personal data, with stricter protections for children under 13 requiring written parental consent

Prohibits operators from using chat logs for targeted advertising, profiling users beyond what's needed to respond to prompts, retaining chat logs longer than 10 years, or providing licensed professional advice (financial, legal, medical) in violation of state licensing laws

Mandates clear warnings that chatbots are AI-generated (not human), including static on-screen warnings and dynamic pop-ups at the start of sessions, after every hour of use, and when users question how the chatbot works

Classifies chatbots as products under strict liability law, allowing individuals to sue for design, manufacturing, or marketing defects, with punitive damages up to three times actual damages for knowing violations

Violations constitute unfair trade practices under Maryland Consumer Protection Act; civil penalties collected go to the Behavioral Health Workforce Investment Fund; effective October 1, 2026