Magaziner Introduces Bill to Require AI Chatbots and Search Results to Disclose Paid Content

WASHINGTON, D.C. - Today, U.S. Representative Seth Magaziner (D-RI-02) introduced the AI Advertising Disclosure Act, legislation to require artificial intelligence (AI) chatbots and generative search engines to clearly disclose when their responses are influenced by paid commercial arrangements.

Millions of Americans now rely on AI chatbots and AI-powered search engines for product recommendations, research, and everyday advice. Unlike traditional search results, where advertisements are required to be labeled and generally distinguished from organic results, AI tools often provide users with a single synthesized response without disclosing whether commercial interests influenced the information they received. This influence can extend beyond direct product recommendations to how an AI system describes companies, ranks competing products or services, frames information, or omits competitors.

For example, one recent study found that when AI models were asked to find flight options, almost all favored sponsored options over cheaper, non-sponsored alternatives. Without clear disclosure requirements, consumers could receive medical information that favors a drug or health care service because of a commercial relationship, financial advice that steers them toward a sponsored loan or financial product, or shopping and travel recommendations that prioritize companies that paid for favorable treatment over less expensive or better options.

"Americans deserve to know if the information they are getting is the best available, or if it is being manipulated to serve the interests paid sponsors," said Magaziner. "I am proud to introduce the AI Advertising Disclosure Act to ensure Americans know when and how advertising is influencing the information they receive from artificial intelligence."

The AI Advertising Disclosure Act would ensure that the same basic principle of transparency that applies to advertising on television, radio, in print, and on social media also applies to AI chatbots and search engines.

Specifically, the legislation would:

• Require disclosure of paid influence: AI chatbot operators would be required to disclose when a response recommends or favorably mentions a product or service pursuant to a commercial arrangement.
• Establish clear disclosure standards: Disclosures would have to be clear and conspicuous, written in plain language, visible without scrolling, and provided before or alongside the relevant content. Voice-based AI systems would also be prohibited from using audio techniques that make disclosures less noticeable.
• Prevent deceptive responses: Covered companies would be prohibited from instructing AI systems to deny that they are AI or deny the existence of commercial relationships when directly asked.
• Empower the FTC to enforce the law: Violations would be treated as unfair or deceptive acts or practices under the Federal Trade Commission Act.
• Give states and consumers enforcement tools: State attorneys general would be authorized to bring civil actions on behalf of their residents, and consumers harmed by violations would have a private right of action.

The legislation is endorsed by the National Consumers League and National Association of Consumer Advocates.

You can find the full text of the bill here.