HB 4869
CONSUMER FRAUD-AI DISCLOSURE
TL;DR
Illinois Representatives Hoan Huynh, Norma Hernandez, and Kevin Olickal introduced HB 4869 to amend the state's Consumer Fraud and Deceptive Business Practices Act, requiring businesses to disclose when they use AI in consumer-facing interactions. The bill targets undisclosed AI use in customer service, marketing, and sales communications. It's currently stalled in the Rules Committee.
How This Might Impact Your Business
Companies using AI chatbots for customer service in Illinois would need to clearly disclose to consumers that they're interacting with AI, not a human.
Marketing teams using generative AI to create ads, emails, or product descriptions targeting Illinois consumers may face new disclosure obligations.
Violations would be enforceable under the Illinois Consumer Fraud Act, which allows for civil penalties up to $50,000 per violation plus attorney's fees.
Retailers, financial services firms, healthcare providers, and any business using AI-powered customer interactions in Illinois are in scope.
No company size threshold is specified, meaning small businesses using off-the-shelf AI tools could be equally liable as large enterprises.
The bill is currently re-referred to Rules Committee, signaling it has stalled and may not advance this session without sponsor pressure.
Class action exposure is significant since Illinois Consumer Fraud Act claims are frequently litigated as class actions.
What Should You Do
Inventory every consumer-facing AI tool your company uses in Illinois, including chatbots, voice assistants, AI-generated marketing content, and automated email responses.
Ask your legal team to draft template AI disclosure language that could be quickly deployed to customer interfaces if this bill or similar legislation advances.
Review vendor contracts with AI providers to confirm who bears liability for disclosure failures and whether vendors can support disclosure requirements.
Track the bill's movement out of Rules Committee; if it advances, expect a compliance window of 6-12 months based on similar Illinois consumer protection laws.
Benchmark against California's and Utah's existing AI disclosure laws, since Illinois often models its consumer protection statutes on other states' frameworks.
Who It Affects
Sponsors
Status Timeline
committee
Rule 19(a) / Re-referred to Rules Committee
April 5, 2024