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The CHATBOT Act prohibits AI chatbots from marketing, advertising, or providing services in regulated professions (finance, insurance, healthcare, legal, and accounting) while falsely implying they possess professional licenses or are verified by licensed practitioners. The Federal Trade Commission is authorized to enforce the prohibition as an unfair or deceptive practice, and the bill creates a private right of action allowing injured persons to sue for damages up to $5,000 per violation (or treble damages for willful violations), with states also empowered to bring enforcement actions.
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