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BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:
1. a. A person or entity shall not deploy generative artificial intelligence to communicate or otherwise interact with a consumer for the purpose of engaging in trade or commerce in such a way as to cause a reasonable person to believe they are communicating or interacting with a human unless the person or entity provides a clear and conspicuous verbal or written notice at the beginning of the interaction that the consumer is communicating or interacting with generative artificial intelligence.
b. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any person or entity that deploys generative artificial intelligence to communicate or interact with a consumer for the purpose of engaging in trade or commerce to violate the provisions of this section.
c. As used in this section, “generative artificial intelligence” mean a technology system that: (1) is trained on data; (2) is designed to simulate human communication through one or more of the following: (a) text; (b) audio; or (c) visual communication; and (3) generates non-scripted outputs with limited or no human oversight.
2. This act shall take effect immediately.
STATEMENT
This bill requires a person or entity that deploys generative artificial intelligence to communicate or interact with a consumer to provide a clear and conspicuous notice that the consumer is communicating or interacting with generative artificial intelligence if the person or entity deploys the generative artificial intelligence in a manner that would cause a reasonable person to believe they are communicating or interacting with a human. A notice provided under the bill shall be verbal or written and shall be provided at the beginning of an interaction.
A violation of the bill’s provisions would be an unlawful practice under the consumer fraud act, and would be punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, a violation of the consumer fraud act can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured.