The Youth AI Privacy Act requires AI chatbot companies to implement safeguards when they know minors are using their services, including displaying clear disclosures every 30 minutes that the user is talking to AI rather than a human, restricting how companies use personal data to personalize responses beyond the current session, and prohibiting addictive features like achievement badges, push notifications, and rewards tied to usage frequency. The Federal Trade Commission has one year to establish detailed rules for data personalization and addictive features. The bill is enforced through the FTC (which can penalize violations as unfair or deceptive practices), state attorneys general (who can sue on behalf of residents), and parents or guardians (who can bring private lawsuits seeking damages and injunctive relief), with the FTC issuing guidance within 180 days on how companies determine whether a user is a minor without requiring mandatory age verification.
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