Washington – The Computer & Communications Industry Association will testify today before the Delaware Senate Committee on Banking, Business, Insurance, and Technology in opposition to HB 306, warning that the legislation could create legal uncertainty, increase litigation risk, and impose unclear compliance obligations on businesses developing AI-powered tools.
CCIA supports efforts to improve transparency surrounding artificial intelligence systems. However, the association argues that several provisions of HB 306 rely on vague and undefined terms, including “commercial transaction” and “interactive session,” making it difficult for companies to determine how to practically comply with the proposal if it became law.
The association also raises concerns about the bill’s strict liability provisions. The provisions could expose businesses to liability regardless of intent or whether a consumer was actually misled. CCIA further warns that the legislation’s private right of action encourages costly litigation and creates significant compliance burdens for businesses while providing limited consumer benefit. CCIA maintains that transparency requirements should be clear, workable, and enforceable without creating unnecessary legal uncertainty or discouraging responsible innovation.
The following statement can be attributed to Kyle Sepe, State Policy Manager, Northeast Region at CCIA:
“HB 306 creates significant legal uncertainty for businesses developing and deploying AI tools. Transparency requirements should provide clear expectations for companies while protecting consumers, not invite costly litigation based on vague standards and undefined obligations. CCIA remains committed to working with policymakers and stakeholders to develop a framework that promotes transparency and consumer trust without imposing unnecessary litigation exposure.”
