SC S0896

Establishes the "Chatbot Protection Act" requiring chatbot providers to obtain affirmative consent before processing personal data or using chat logs for AI model training purposes.

Prohibits chatbot providers from using chat logs for targeted advertising, selling user chat logs, engaging in user profiling beyond what is necessary for express requests, and retaining chat logs for more than 10 years.

Requires clear disclosure to users that they are interacting with a chatbot rather than a human, repeated at the start of each session and hourly thereafter, with prohibitions on implying chatbot outputs are equivalent to licensed professional advice.

Classifies chatbots as products for liability purposes, making providers liable for user injuries regardless of whether reasonable care was exercised or whether the provider had a direct contractual relationship with the user.

Authorizes civil penalties up to $5,000 per violation, with enforcement by the Attorney General or county attorneys, and grants injured users a private right of action including punitive damages and attorney's fees.