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Pennsylvania: Bill introduced to amend consumer protection and unfair trade practices law

On May 16, 2024, Senate Bill 1044 for An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions and for unlawful acts or practices and exclusions, was introduced and assigned to the Communications and Technology Committee on the same day.

The bill updates the definitions for 'unfair methods of competition' and 'unfair or deceptive acts or practices' to include 'knowingly or recklessly creating, distributing, or publishing any content generated by artificial intelligence without clear and conspicuous disclosure, including written text, images, audio, video contact and other forms of media. A disclosure must also state that the content was generated using AI, must be presented in a manner reasonably understandable and readily noticeable to the consumer, and must be presented in the same medium as the content.'

The bill also defines artificial intelligence (AI) as 'technology or tools that use predictive algorithms to create any new content, including audio, content, code, images, text, simulations or videos.'

Lastly, the bill defines 'clear and conspicuous' to mean: 

  • the statement or disclosure is disclosed in a size, color, contrast, location, duration, and audibility that is readily noticeable, readable, understandable, and capable of being heard;

  • the statement or disclosure does not contradict and is not inconsistent with any other information with which the statement or disclosure is presented;

  • if the statement or disclosure modifies, explains, or clarifies other information with which the statement or disclosure is presented:

    • the statement or disclosure is presented in proximity to the information that the statement or disclosure modifies in a manner that is likely to be noticed, readable, understandable; and

    • the statement or disclosure is not to be obscured in any manner;

  • if the statement or disclosure is an audio statement or disclosure, the statement or disclosure is delivered in a volume and cadence sufficient for a consumer to hear and comprehend the statement or disclosure;

  • if the statement or disclosure is a visual statement or disclosure, the statement or disclosure is of a size and shade and appears on the screen for a duration sufficient for a consumer to read and comprehend the statement or disclosure; and

  • if the statement or disclosure is a print advertisement or promotional material, including a point-of-sale display or brochure materials directed to a consumer, the statement or disclosure is in a type size and location sufficiently noticeable for a consumer to read and comprehend the statement or disclosure in a print that contrasts with the background against which the statement or disclosure appears.

If enacted, the bill states it shall take effect in 60 days. 

You can read the bill here and track its progress here.