Washington – The Computer & Communications Industry Association today raised concerns with SB 896 and SB 1037. The legislation is under consideration by the South Carolina Senate Labor, Commerce, and Industry Ad Hoc Subcommittee and would establish new requirements for chatbot and artificial intelligence services.
CCIA supports efforts to promote safer online experiences for children. However, the association cautioned that the bills currently being considered rely on overly broad definitions and prescriptive requirements that could create significant compliance challenges and unintended consequences for innovation. Specifically, the legislation:
- Defines “chatbot” in expansive ways that could apply to a wide range of commonly used technologies, including educational tools, customer service platforms, research assistants, and productivity applications, rather than being limited to higher-risk uses.
- Requirements related to age verification and restricted features could increase pressure on companies to collect sensitive personal data from users, including minors, raising privacy and cybersecurity concerns. Courts have repeatedly recognized that conditioning access to lawful speech on identity verification can raise First Amendment issues.
- Vague and subjective standards in the legislation tied to user well-being, emotional dependence, and product liability could expose companies to significant legal risk and encourage costly litigation.
- Prescriptive provisions, including consent mandates and restrictions on standard chatbot functionality, could disrupt user experience and limit access to beneficial tools relied on by South Carolinians.
CCIA encourages lawmakers to consider more effective options for protecting kids online, like helping parents navigate existing tools, promoting digital literacy, and aligning with established federal frameworks.
The following statement can be attributed to Tom Mann, State Policy Manager for the South Region at CCIA:
“We support efforts to create safer online experiences for young people. Unfortunately, these bills take a broad and overly prescriptive approach that risks doing more harm than good. SB 896 and SB 1037 would increase privacy risks, invite costly litigation, and make it harder to deliver tools that people, including families, rely on every day. South Carolina lawmakers should focus on clear, targeted solutions that actually improve online safety.”
