Computer & Communication Industry Association
PublishedJuly 8, 2025

CCIA to Testify Against California’s SB 243 on AI Chatbot Disclosures, Citing Legal and Innovation Risks

Washington – The Computer & Communications Industry Association is testifying today before the California Assembly Privacy and Consumer Protection Committee to voice concerns over SB 243. While intended to protect children from deceptive chatbot interactions, the bill’s broad scope could impose costly requirements even on AI tools that are not designed to act like human companions or engage users in personal conversations.

Under SB 243, AI models that support everyday tasks like tutoring, mock interviews, or customer service could be classified as “companion chatbots,” even if they weren’t designed to simulate human companionship or meet users’ social needs. These tools would be subject to new rules, including repeated pop-up disclosures, mandatory audits, and detailed reporting requirements.

California law already requires bots to identify themselves under SB 1001, which was enacted in 2018 to prohibit bots from misleading users about their artificial identity during online interactions. CCIA believes layering additional obligations on low-risk AI tools would create compliance confusion without offering meaningful safety benefits. 

The bill would also allow private lawsuits for even minor or technical violations, such as a brief delay in a required notification. CCIA recommends a more effective and balanced enforcement approach, such as centralized oversight by the Attorney General, which would promote consistency and allow businesses to seek guidance and demonstrate good-faith compliance. 

The following statement can be attributed to Aodhan Downey, State Policy Manager for CCIA, who is testifying before the committee today:

“We agree with California’s leadership that children’s online safety is of the utmost importance, and our members prioritize advanced tools that reflect that priority. But SB 243 casts too wide a net, applying strict rules to everyday AI tools that were never intended to act like human companions. Requiring repeated notices, age verification, and audits would impose significant costs without providing meaningful new protections. We urge lawmakers to narrow the scope of this bill and move toward a more targeted, consistent approach that supports both user safety and responsible innovation.”

News

Public Procurement Act: CCIA Europe Reacts to Proposed EU Rules

Following the European Commission’s presentation of the Public Procurement Act proposal, the Computer & Communications Industry Association (CCIA Europe) issued the following statement.  The...
reading-tablet
  • Statements
    Procurement
News

New EU Rules on Short-Term Rentals Lack Enforcement and Redress for Restrictions 

Brussels, BELGIUM – Today, the European Commission presented its Affordable Housing Act, introducing a new framework for local authorities seeking to restrict short-term rentals in areas deemed to b...
reading-tablet
  • Press Releases
    Digital Economy
News

CCIA Submits FCC Comments on Expanded Supply Chain Risk List

Washington – The Computer & Communications Industry Association filed comments today urging the Federal Communications Commission to take a more targeted approach as it considers new rules imple...
reading-tablet
  • Press Releases
  • Trade
News

CCIA Study Finds FCC’s 2026 Covered List Regime Could Cost U.S. Businesses Up to $7.7 Billion

Washington — The CCIA Research Center has released a new analysis, “The Supply Chain Costs of the FCC’s 2026 Covered List Regime,”  finding that the Federal Communications Commission’s ...
reading-tablet
  • Press Releases
  • Trade