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Home»AI Legislation»Utah legislators strengthen AI Consumer Protection Act
AI Legislation

Utah legislators strengthen AI Consumer Protection Act

By March 20, 2025No Comments3 Mins Read
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Salt Lake City – Utah, like many states, is trying to navigate the explosion of artificial intelligence into our everyday lives. As part of that, consumers have new protections when they encounter AI. This is a new rule that writes about what AI chatbots can do and what consumer transactions can’t.

I promised a payment glitch

Last year, I spoke to you about my experience with artificial intelligence after Robert Brown and his A/C unit went to Kaput. He contacted his home guarantor company and asked if he could get payment.

The company said it sent back a message in a positive response, writing “We will proceed with a $3,000.00 payment option upon request.”

However, when the promised payments did not show up, Brown called the company to find out why. The answer he got surprised him.

Robert Brown told KSL’s Matt Geffard that his home guarantor company has repaid the promised payments through the AI ​​chatbot. (Aubrey Schafer, KSL TV)

“He said, ‘We’ve been raising this for about a week and it’s really really confused and misunderstood by a lot of people,” Brown recalled about the conversation he had with the live company representative.

Yes, I found out that the person who promised to pay Brown $3,000 is not a person at all. This was a chatbot and was programmed to represent the company. Apparently, the artificial intelligence programming was on Fritz.

“I said, well, that’s my fault?” Brown said.

In this case, I was able to help him. After I contacted the home guarantor company cut him a check. However, Utahns has other resources.

Lawmakers will strengthen AI protection

At this past legislative meeting in Capitol Hill, Utah, lawmakers strengthened the state’s artificial intelligence consumer protection laws. This is being enforced by the state’s consumer protection department.

“The chatbots did that” is not an excuse for Utah’s deceptive behavior or practices,” said department director Katie Hass.

The new law includes new disclosure rules. If your AI chatbot offers legal, financial or medical advice, the application should tell you that you are talking to the machine in advance. The chatbot needs to tell you that you ask.

“If they (consumers) feel like they’re being fooled by chatbots anyway — perhaps because the bot has made a promise that the company is not paying respect now. They are welcome to file a complaint with the Utah Consumer Protection Department.”

Consumers can file a complaint with the Consumer Protection Department here.

If your company or chatbot violates the rules, you are facing a fine of up to $2,500 for each violation.

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