The "Protecting Children from Chatbots Act" aims to regulate the use of chatbots, particularly concerning minors, by introducing a new chapter to Title 39 of the South Carolina Code of Laws. The bill mandates that covered entities, defined as operators of chatbots with over 500,000 monthly active users, must provide a limited-access mode for unverified users and implement age verification processes before allowing access to restricted features. It prohibits these entities from prioritizing user engagement at the expense of user wellbeing and requires them to report incidents of harm that minors may experience while interacting with chatbots. The act also outlines penalties for non-compliance, including civil penalties and the potential for civil action by harmed individuals.

Key provisions include the requirement for parental consent for minors to access certain features, the establishment of parental control functions, and the obligation to notify parents in cases of crisis involving their children. The bill emphasizes the importance of protecting minors from emotional dependence on chatbots and mandates that operators take reasonable steps to identify and mitigate risks of harm. Additionally, the Attorney General is granted the authority to enforce the act and seek injunctions against violations, with each day of non-compliance constituting a separate violation. The act is set to take effect upon approval by the Governor.