In one paragraph
Vermont's H.784 (2026) would have regulated chatbot providers under a new 9 V.S.A. chapter 118. Providers could not use chat logs for targeted ads, sell chat logs, train on minors' data, or train on adults without affirmative consent, and would have had to disclose the chatbot is not human at the first output and hourly, assess risks monthly, and publish information. Chatbots would be products with provider liability. The Attorney General or a State's Attorney could sue, and users could recover $5,000 liquidated damages. Referred to committee January 27, 2026; died.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died and never became law. It would have imposed privacy, disclosure, risk assessment and liability duties on chatbot providers serving Vermont users.
Key provisions
- Chatbot: any AI, algorithmic or automated system generating text, audio, image or video while simulating conversation; provider is anyone who creates, distributes or makes it available
- Provider may not use chat logs for targeted advertising or sell them; may not train on a minor's data or process it without parental consent; needs affirmative consent to train on adults' data; may not retain chat logs more than 10 years (4193b)
- Must clearly notify users they are interacting with a chatbot before the first output, hourly, and when asked; may not imply output comes from licensed professionals (4193c)
- Must assess risks of harm monthly and post monthly public information; Attorney General sets rules (4193c, 4193d)
- Chatbot treated as a product; providers liable for user injuries (4193e)
- Attorney General or State's Attorney civil actions; private suits for $5,000 per violation of 4193b or $5,000 in total for 4193c(a)-(b) violations, or actual damages if greater (4193f)
- Would have taken effect July 1, 2026; referred to Commerce and Economic Development January 27, 2026 and died
Latest legislative action
Jan 27, 2026. Read first time and referred to the Committee on Commerce and Economic Development; died when the Vermont General Assembly's 2025-2026 biennium ended May 29, 2026
Sponsors (showing 5 of 34)
| Name | Role |
|---|---|
| Daniel Noyes | Primary |
| Monique Priestley D | Primary |
| Robert LaClair | Primary |
| Barbara Rachelson D | Cosponsor |
| Bram Kleppner D | Cosponsor |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error