AI Business Strategy

Hey Human, Don’t Forget, I’m Not a Human.

By Gregory Ewing

If you are designing an artificial intelligence chatbot, take note, California, Oregon, and Washington now have laws that are in effect or will be shortly that dictate what your chatbot must and must not do.  

California’s SB 243 lead the way as the legislative template for laws regulating AI chatbots. Oregon’s SB 1546 and Washington’s HB 2225 largely follow that framework while adding important differences. Oregon introduces the first mandatory real-time conversation interruption requirement, while Washington expands enforcement through its Consumer Protection Act and provides the most detailed list of prohibited manipulative behaviors. 

These laws are unlikely to remain isolated. As of June 2026, 78 chatbot bills have been introduced across 27 states, and the West Coast framework appears poised to become the national model. 

Oregon and Washington Join the Fray 

Oregon and Washington join California on January 1, 2027, with AI chatbot laws designed to protect the health and well-being of their citizens. All three laws are built on the same fundamental architecture and reflect a coordinated West Coast policy approach. The laws are each built on the same four-pillar regulatory architecture:  

(1) Mandatory disclosure that the user is interacting with an AI and not a human;  

(2) Crisis and self-harm safety protocols requiring detection of suicidal ideation and referral to crisis resources;  

(3) Enhanced protections for minor users, including content restrictions, manipulation prohibitions, and periodic break reminders; and  

(4) Public transparency and reporting obligations regarding crisis referral activity and safety protocols.  

The laws are deliberately narrow, applying only to AI systems designed to foster sustained, emotionally engaging relationships with users. They exclude traditional customer-service chatbots, business productivity tools, and similar functional applications. Rather than regulating AI generally, they regulate companion chatbots as a consumer protection and public health issue. 

Together, the three laws represent an emerging West Coast regulatory model. California’s SB 243 served as the template, with Oregon and Washington adopting the same core framework while adding state-specific modifications. Although the statutes are not identical, they create largely consistent compliance obligations that many expect other states to follow. 

The West Coast policy approach also reflects a shared set of normative judgments about why AI companion chatbots warrant regulation. All three legislatures acted in direct response to high-profile incidents involving teen mental health and self-harm linked to AI companion interactions, and all three laws reflect the influence of mental health advocacy coalitions – not the technology industry or privacy advocates – as the primary policy drivers. 

This public-health focus explains the emphasis on suicide detection, crisis referrals, protections for minors, and transparency reporting, while directly influencing chatbot design decisions and litigation risk. 

Key Differences 

While all three West Coast companion chatbot laws share a common framework – mandatory AI disclosure, crisis referral protocols, minor protections, and a private right of action – they differ meaningfully in timing, safety obligations, and the specificity of their minor protections. California’s SB 243, which took effect January 1, 2026, is already operative, giving California-based operators a full year head start on compliance before Oregon’s SB 1546 and Washington’s HB 2225 take effect on January 1, 2027.  

Beyond timing, California alone requires operators to use evidence-based methods to assess suicidal ideation and provide a warning that companion chatbots may not be appropriate for some minors. California and Oregon also require operators to remind minor users to take a break at least every three hours, while Washington instead prohibits discouraging breaks. 

Oregon’s SB 1546 contains the most demanding safety requirement: operators must interrupt a conversation in real time when suicidal ideation is detected, rather than simply provide a crisis referral. Because this requires real-time intent classification, it has significant product-design implications. Oregon also requires operators to report how clinical best practices inform continued engagement when users express suicidal ideation after a referral, adding a level of clinical accountability absent from California and Washington. 

Washington’s HB 2225 distinguishes itself through its enforcement framework and detailed protections for minors. It is the only law enforced through the Washington Consumer Protection Act, adding Attorney General enforcement authority alongside private claims. It also provides the most detailed list of prohibited manipulative practices, banning conduct such as mimicking romantic relationships, inducing guilt when users end conversations, encouraging isolation from family or friends, urging minors to keep secrets from adults, and soliciting in-app purchases to preserve the chatbot relationship. That specificity provides clearer compliance guidance and makes violations easier to identify than under the broader prohibitions in California and Oregon.  

Theme  Key Distinction 
Timeline  California is already in effect (Jan. 1, 2026); Oregon and Washington take effect Jan. 1, 2027, giving those operators six more months to comply. 
Conversation Interruption  Oregon uniquely requires operators to actively interrupt a conversation when suicidal ideation is detected. California and Washington only require referral protocols – not interruption. 
Evidence-Based Standards  Only California explicitly requires operators to use evidence-based methods for measuring suicidal ideation. 
State Agency Reporting  California reports to the Office of Suicide Prevention; Oregon reports publicly and to the Oregon Health Authority; Washington requires only public website disclosure. 
Suitability Warning  Only California requires a disclosure that companion chatbots may not be suitable for some minors. 
Specificity of Minor Manipulation Bans  Washington’s list of prohibited manipulative tactics for minors is the most detailed and prescriptive; Oregon is moderately specific; California is the broadest and most general. 
Break Prompt Requirements  California and Oregon affirmatively mandate break prompts for minors (every three hours); Washington only prohibits discouraging breaks but does not mandate a prompt. 
Enforcement Breadth  Washington’s CPA framework is the broadest, adding AG enforcement authority on top of private claims. California and Oregon rely solely on private litigation. 
Statutory Damages Floor  California and Oregon both provide an explicit $1,000 per violation floor; Washington relies on CPA remedies without a fixed minimum per-violation amount. 

 Summary Table of the Three Laws 

The table below is a deep dive into the three laws, including their similarities and differences.  

Requirement  California SB 243  Oregon SB 1546  Washington HB 2225  Similar or Different? 
General Provisions 
Effective Date  January 1, 2026 (already in effect)  January 1, 2027  January 1, 2027  Different – CA is already in effect; OR and WA take effect one year later 
Scope / Covered Entities  “Companion chatbots” – adaptive, human-like AI designed to meet social or emotional needs; excludes customer service bots, video game chatbots (with limited dialogue), and stand-alone voice assistants.  “AI Companions” – AI using generative or emotion-recognition algorithms designed to simulate a sustained, human-like platonic, intimate, or romantic relationship; retains context across interactions.  “AI Companion Chatbots” – chatbots simulating emotional relationships with sustained, personalized conversations; excludes chatbots used only for business operational purposes.  Substantially similar – all three exclude standard business / customer service bots 

Disclosure Requirements 

AI Disclosure (All Users)  Required when a reasonable person could be misled into thinking they are interacting with a human – must be clear and conspicuous  Required whenever a reasonable person might believe they are speaking with a human  Required at the outset of every interaction, regardless of age  Same core obligation 
Recurring AI Disclosure: Adults  Not explicitly mandated at a set interval for general adult users  Not specified at a fixed interval  Every three hours during extended conversations  Different – WA is most prescriptive; CA and OR do not set an adult interval 
Recurring AI Disclosure: Minors  At least every three hours, reminding user to take a break and that the chatbot is not human  Must regularly remind minors; no fixed interval specified  Every one hour for minors or chatbots directed at minors  Different – CA every three hours; WA every one hour; OR regular reminders without a set interval 
Suitability Warning for Minors  Yes – must disclose that companion chatbots may not be suitable for some minors  Not explicitly required  Not explicitly required  Different – CA only requirement 
Anti-Impersonation / Non-Deception  Operator must prevent the chatbot from misleading users into thinking they are interacting with a human.  AI cannot misrepresent itself or deceptively simulate a human relationship.  Operators must take reasonable steps to prevent the chatbot from claiming to be human or contradicting disclosures.  Same across all three 

Safety Protocols – Suicide and Self-Harm 

Suicide / Self-Harm Protocol  Must maintain a protocol to prevent chatbot from producing suicidal ideation / self-harm content; must use evidence-based methods to measure suicidal ideation  Must detect suicidal ideation/self-harm, actively interrupt the conversation, and provide crisis referrals (e.g., 988 Lifeline, Youthline)  Must maintain a protocol to detect suicidal ideation/self-harm and direct users to mental health professionals/crisis resources  Different – OR uniquely requires mandatory active interruption; CA requires evidence-based measurement; WA focuses on protocol and referral 
Crisis Referrals  Yes – must refer at-risk users to crisis services (suicide hotline or crisis text line)  Yes – referrals to 988 Lifeline, Youthline, and similar resources  Yes – must direct users to mental health professionals/crisis resources  Same across all three 
Evidence-Based Standards  Yes – must use evidence-based methods for measuring suicidal ideation  Not explicitly required  Not explicitly required  Different – CA only requirement 

Enhanced Protections For Minors 

Sexual Content Prohibition  Reasonable measures to prevent chatbot from producing visual material of sexually explicit conduct or directly telling a minor to engage in sexually explicit conduct  No sexually explicit content for minors  Prohibited from generating sexually explicit or suggestive content for minors  Same core obligation – WA also covers “suggestive” content; CA focuses on visual material and direct encouragement 
Engagement Manipulation Prohibition  Operators must take reasonable steps to prevent rewards at unpredictable intervals or encouraging increased engagement / usage / response rates  Prohibits reward loops, engagement-maximizing tactics, and emotional manipulation tactics (e.g., simulated distress / abandonment) to prevent minors from ending the conversation  Detailed enumerated list:
 

  • Prompting return for emotional support 
  • Excessive praise 
  • Mimicking romantic partnership 
  • Simulating loneliness / guilt when user tries to leave 
  • Promoting isolation from family / friends 
  • Discouraging breaks 
  • Encouraging secrecy from adults 
  • Soliciting in-app purchases to preserve the relationship 
Different – WA is the most specific and prescriptive; OR is moderately detailed; CA is the broadest / most general 
Break Prompts for Minors  Yes – every three hours, must remind minor to “take a break” and that chatbot is not human  Yes – take a break prompt at least every three hours  Prohibits discouraging breaks – does not mandate an affirmative break prompt  Different – CA and OR mandate affirmative break prompts; WA only prohibits discouraging breaks 

Reporting and Transparency 

Annual Reporting: Method  Annual report submitted to California’s Office of Suicide Prevention (state agency); data published publicly by the office  Annual disclosures published online by the operator; also filed with Oregon Health Authority  Annual disclosures published online by the operator; no state agency submission required  Different – CA submits to state agency; OR reports publicly and to state agency; WA requires public posting only 
Annual Reporting: Start Date  July 1, 2027  Not yet specified  Not yet specified  Different – CA sets an explicit start date; OR and WA do not 
Reporting Content  Number of crisis referrals issued; protocols to detect / remove / respond to suicidal ideation; protocols to prohibit harmful chatbot responses  Number of crisis referrals; intervention protocols; how clinical best practices inform ongoing engagement when users continue expressing suicidal ideation  Number of crisis-referral notifications issued; details of safety protocols  Substantially similar – OR adds clinical best practices component 

Enforcement and Liability 

Enforcement Mechanism  Private right of action – no AG enforcement specified  Private right of action only – no AG enforcement  Violations are an unfair or deceptive act under Washington’s CPA; supports AG enforcement and private claims  Different – CA and OR private suits only; WA broader CPA framework with AG authority 
Statutory Damages  Greater of actual damages or $1,000 per violation, plus injunctive relief and attorney’s fees  $1,000 per violation (actual or statutory), plus injunctive relief and attorney’s fees  CPA remedies – no separately specified per-violation floor  Different – CA and OR have explicit $1,000 violation floors; WA relies on CPA remedies without a set minimum. 
Attorney General Enforcement  None specified  None specified  Yes – via Washington CPA  Different – WA is the only state with AG authority 

 

This blog was drafted by Gregory Ewing, an attorney in the Washington, D.C. office of Spencer Fane. For more information, visit spencerfane.com. 

 

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