New Chatbot Toy Moratorium Bill Raises Questions on Chatbot Regulations
In response to multiple lawsuits against AI companies over their platforms potentially encouraging suicide and other criminal behaviors, including homicide, California Senator Steve Padilla has introduced SB867. This bill would prohibit, in California until January 1, 2031, the sale, exchange, or possession with intent to sell or exchange to a retailer of any toy that includes a companion chatbot.
A “toy” is defined as a product designed or intended by the manufacturer for use in play by children 12 years of age or younger. This raises the question: is a moratorium on a product or service capable of misuse an effective regulatory strategy?
Existing Regulations in California and New York
California and New York already have laws that regulate companion bots:
California’s SB 243, which took effect on January 1, 2026, requires:
- Clearly notifying individuals that they are interacting with a bot, not a human.
- Allowing a companion chatbot to engage with users only if it maintains a protocol to prevent production of suicidal ideation, suicide, or self-harm content, including providing a notification to users referring them to a crisis service provider.
For minors, it also requires:
- Reminding the user every three hours to take a break and that the companion is not human.
- Instituting reasonable measures to prevent the companion chatbot from producing visual material of sexually explicit conduct or directly encouraging such conduct.
Starting in 2027, it will also impose an annual reporting requirement to California’s Office of Suicide Prevention (OSP).
New York’s AI Companion Law (N.Y. Gen. Business Law § 1700, et seq.) has similar requirements, including making reasonable efforts to detect and address suicidal ideation or expressions of self-harm from users to the AI companion, and reminding the user to take breaks every three hours (not limited to minors).
The New York law is enforceable by the Attorney General, while the California law permits a private right of action.
