S.896: Regulating Chatbots at Your Expense

The 10-Second Verdict

S. 896 is the "Chatbot Protection Act," a South Carolina bill that imposes sweeping restrictions on AI chatbots and chatbot providers.

ConservaTruth Take.

S.896 creates yet ANOTHER regulatory chapter adding more government control, and citizens lower their guard because they assume the government is handling it. Parents stop checking what their kids do on chatbots because "there's a law about that now." Adults trust AI tools more than they should because the AG approved them. The bill replaces parental and personal judgment with a state regulatory regime that can’t possibly do what families and individuals can do for themselves.

Be careful with ambiguous words.

• Advertisement

• Affirmative consent

• Risk of harm

• Necessary

• Express request

• Profiling

• Injury

• Simulates interpersonal interactions

• Reasonably should have known

• Dark pattern

• Deidentified data

• Publicly available information

• Access to data

• Any other rules

More ambiguous words.

Proposed Section 39-80-10(2)(a)(ii) and (iii):

"...written in easily understandable language… reasonably accessible and available by users with disabilities."

"Easily understandable" and "reasonably accessible" are left for the Attorney General to define by regulation. Any judge or jury could then question the AG's decision in a private lawsuit.

Mandate Words.

• Shall develop, implement, and maintain

• May not process Affirmative consent (highly structured definition)

• Promulgate regulations (Attorney General authority)

Attorney General Gets Undefined Regulatory Power

Section 39-80-40 grants the AG broad authority to define "risk of harm" and mandate monthly "risk assessments". What constitutes "harm"? Hurt feelings? Misinformation? Wrong answers?

Section 39-80-40(B): "The Attorney General may adopt any other rules or promulgate regulations necessary to implement this chapter.

Parental Consent Without Verification Standards

Section 39-80-20(A)(3) requires parental consent before processing minors' data, but provides zero guidance on verification methods. How does a chatbot provider determine age? What constitutes valid parental consent, more data collection? The bill states that the user's parent or legal guardian did not provide affirmative consent. How do chatbot providers verify age or authenticate a parent's consent?

"Affirmative Consent" Theater

The consent definition (Section 39-80-10(2)) requires the "decline" option to be "at least as prominent" and take "the same or fewer steps" as consent. This mandates specific UI design choices with no flexibility regarding different contexts. It also assumes all data processing is harmful by default—consent can't be inferred from "continued use". This treats adults like children, incapable of making informed choices.

Free Speech Issue

The bill holds providers liable for chatbot output generated by users' own questions, treating user-initiated speech as a defective "product" (Section 39-80-50).

Data / Privacy / Control Language

• “Process personal data”

• “Chat logs”

• “Profiling”

• “Training”

• “Data security program”

Already on the Books?

Current law: (Title 39 Chapter 99), the SC Consumer Protection Code, the SC Data Breach Notification Act, and existing fraud statutes. The Federal Trade Commission already enforces deceptive AI practices nationally.

Final Take.

The concern behind S. 896 is real. Some children have been hurt by chatbot interactions. But South Carolina already has laws covering fraud, negligence, and consumer deception, and the FTC implements another layer on top of that. The question the General Assembly should be asking isn't "what new law can we pass?" It's "why aren't we enforcing what we already have?"

Disclaimer: The views expressed in this article are those of the author and do not constitute legal or professional advice. ConservaTruth assumes no liability for any actions taken based on this content. Read more.

Subscribe to ConservaTruth's Email Newsletter for curated insights on South Carolina's legislative activities and conservative viewpoints, delivered straight to your inbox! With vetted and easy-to-understand information, our newsletter empowers you to become an informed and engaged citizen, actively participating in safeguarding our cherished Constitutional values. Don’t miss out on crucial updates—join our community of informed conservatives today!​