The "Chatbot Protection Act" aims to regulate the activities of chatbot providers in South Carolina by establishing a new Chapter 80 in Title 39 of the South Carolina Code of Laws. The bill defines key terms related to chatbot operations, such as "advertisement," "affirmative consent," "chatbot," and "personal data," and outlines the responsibilities of chatbot providers. Notably, it prohibits providers from processing personal data without affirmative consent, retaining chat logs for more than ten years, and selling users' chat logs. Additionally, it mandates that chatbot providers must inform users that they are interacting with a chatbot and not a human, and they must maintain a comprehensive data security program.

The bill also empowers the Attorney General to adopt rules and regulations to enforce these provisions and allows for civil actions against chatbot providers who violate the law. Users who suffer harm due to violations can seek damages, including civil penalties and attorney's fees. The act emphasizes user rights, including access to their chat logs and protection against discrimination for refusing to consent to data processing. Overall, the legislation seeks to enhance user privacy and safety in interactions with chatbots.