The "Chatbot Protection Act" is a proposed bill in South Carolina aimed at regulating chatbot activities and ensuring user protection. It introduces a new Chapter 80 to Title 39 of the South Carolina Code, which outlines definitions related to chatbots, such as "chatbot provider," "personal data," and "affirmative consent." The bill establishes strict guidelines for chatbot providers, including the requirement to obtain affirmative consent from users before processing personal data or chat logs, and prohibits the sale of user data. Additionally, it mandates that chatbot providers must not discriminate against users who refuse to consent to data processing and must maintain a comprehensive data security program.

The bill also includes provisions for civil remedies, allowing users to take legal action against chatbot providers for violations of the act. The Attorney General is tasked with adopting rules and regulations to implement the chapter, including requirements for user notifications and risk assessments. Furthermore, the act stipulates that chatbots are considered products for liability purposes, holding providers accountable for any injuries caused by their chatbots. Overall, the legislation seeks to enhance transparency and user rights in interactions with chatbots while establishing a framework for accountability among providers.