SB2995
CONSUMER FRAUD-AI DISCLOSURE
TL;DR
Illinois Senator Rachel Ventura's SB2995 would require any business using AI to talk to Illinois consumers (think chatbots, AI voice agents, AI sales tools) to clearly disclose that it's AI, not a human. Businesses would also have to offer a free option to talk to a real human during business hours. Violations would be treated as consumer fraud under Illinois law.
How This Might Impact Your Business
Any company using AI chatbots, voice agents, or automated sales tools to communicate with Illinois consumers must provide clear, conspicuous disclosure that the consumer is interacting with AI, not a human.
Companies using AI to sell or offer goods and services must let consumers request more information about how the AI is being used in that interaction.
Businesses must offer a free option to speak with a human during normal business hours, meaning fully automated customer service pipelines would no longer be compliant in Illinois.
No exemptions carved out for small businesses, industry sectors, or transaction size, so a boutique e-commerce shop using a chatbot faces the same rules as a large retailer.
Violations are treated as unlawful practices under the Illinois Consumer Fraud and Deceptive Business Practices Act, exposing companies to Attorney General enforcement, civil penalties up to $50,000 per violation, and private lawsuits with attorney fee recovery.
Sectors most affected include e-commerce and retail, financial services and insurance (AI sales agents), telecom, healthcare scheduling, real estate, and any SaaS company deploying conversational AI to Illinois residents.
Bill was just introduced in January 2026 and re-referred to Assignments, so no immediate deadline, but Illinois has a track record of passing AI consumer laws quickly.
What Should You Do
Inventory every customer-facing AI touchpoint (chatbots, voice IVRs, AI email responders, AI sales assistants) that could interact with Illinois consumers and document current disclosure language.
Have your legal and CX teams draft standardized 'you are talking to AI' disclosures and a 'request more information' pathway that could be deployed quickly if this passes.
Confirm your customer service operations include a human escalation path during business hours at no extra cost, and remove any paywalls or friction that route customers only to AI.
Assign someone to track SB2995 through the Illinois Senate Assignments Committee and flag any hearing dates or amendments.
If you use a third-party AI vendor (Intercom, Salesforce Einstein, Drift, ElevenLabs, etc.), ask them now about built-in disclosure and human-handoff features.
Who It Affects
Sponsors
Status Timeline
introduced
Rule 3-9(a) / Re-referred to Assignments
January 29, 2026