AI Advertising Disclosure Act
Sponsored By: Representative Magaziner, Seth [D-RI-2]
Introduced
Summary
Commercial disclosure for AI-generated content. This bill would require interactive AI services with more than 50,000 monthly users to clearly disclose when outputs are shaped by paid promotions, third-party inputs, fine-tuning, or affiliate links and to forbid designs that hide those ties.
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- Consumers and users: Disclosures must be clear, conspicuous, plainly worded, and visible without scrolling, including when conversations are saved or shared. Users can ask in a session whether a response was subject to a commercial arrangement.
- AI operators and third parties: Covered tools must keep a real-time internal registry of third-party commercial arrangements and follow specific disclosure formats and presentation rules. The bill bars instructing AI to deny being AI or to hide commercial relationships.
- Enforcement and legal remedies: The Federal Trade Commission would write rules within 180 days and update them every 3 years, and would treat violations as unfair or deceptive acts. States can bring parens patriae suits, and individuals may seek injunctions or damages, including up to $1,000 per violation and treble damages for willful breaches, with a 2-year filing window.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Ban on hiding paid AI content
If enacted, the bill would ban covered AI tools from being instructed to deny they are AI or to deny a commercial tie when directly asked. It would bar design tricks that obscure required disclosures and forbid presenting sponsored content as if it were the tool's organic reasoning. These bans would apply to any covered tool operated by a covered entity and would take effect 12 months after enactment.
FTC, states, and private lawsuits
If enacted, the bill would treat violations as unfair or deceptive acts the FTC can enforce. The FTC would have 180 days after enactment to issue rules and must review rules every three years. States could sue on behalf of residents but must give notice to the FTC and coordinate with federal cases. Any person harmed could sue for actual money loss or up to $1,000 per violation, whichever is greater; courts could triple awards for willful violations. Prevailing plaintiffs could get court costs and reasonable lawyer fees, and suits must be filed within two years of discovering the violation. The enforcement rules would take effect 12 months after enactment.
Which AI apps must disclose ads
If enacted, this bill would define which AI tools must follow the rules. Companies with covered tools and more than 50,000 monthly active users would need to disclose when an AI response was influenced by a commercial arrangement. Required disclosures would include paid promotions, sponsorships, affiliate links, brand-influenced advice, and content made using third-party prompts, retrieval sources, or fine-tuning. Disclosures would have to be plain, visible without scrolling, kept when conversations are saved or shared, and voice tools could not mask the notice. Covered entities would also keep a real-time registry of third-party deals and let users ask in a session whether a response was influenced. These rules would take effect 12 months after enactment.
Sponsors & CoSponsors
Sponsor
Magaziner, Seth [D-RI-2]
RI • D
Cosponsors
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 8/24/2026
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 9/1/2026
Rep. Scholten, Hillary J. [D-MI-3]
MI • D
Sponsored 9/4/2026
Rep. Grijalva, Adelita S. [D-AZ-7]
AZ • D
Sponsored 9/4/2026
Rep. McGovern, James P. [D-MA-2]
MA • D
Sponsored 9/8/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov