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The AI Advertising Disclosure Act requires companies operating AI chatbots and generative search tools with over 50,000 monthly active users to disclose when AI-generated responses contain sponsored content influenced by commercial arrangements. The bill mandates clear, conspicuous disclosures identifying the nature of commercial relationships, prohibits deceptive practices like denying AI involvement or obscuring sponsorships, and requires companies to maintain registries of commercial arrangements and allow users to inquire about sponsorships. The Federal Trade Commission is authorized to issue implementing regulations and enforce the law as unfair or deceptive practices, with private rights of action and state enforcement provisions also included.
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