This page covers U.S. law as of June 2026. This is not legal advice. For a plain-English compliance answer tailored to your situation, use the Compliance Checker at DiscloseAI.net.
There is no single federal law requiring all businesses to disclose AI use to customers. Whether you must disclose depends on your state, your industry, and how you are using AI. Utah and Colorado have the broadest enacted obligations. California requires disclosures in specific contexts. The FTC can take action against deceptive AI use in any state under existing consumer protection authority.
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Federal Law Position
As of June 2026, no comprehensive federal statute requires all businesses to affirmatively disclose AI use to customers in every context. The United States does not have a general AI disclosure law at the federal level equivalent to the EU AI Act's disclosure requirements.
The FTC Act (15 U.S.C. § 45) prohibits unfair or deceptive acts or practices in or affecting commerce — and the FTC has made clear this authority extends to AI-generated content and AI-assisted interactions. Several federal agencies have issued sector-specific guidance: the EEOC covers AI in hiring, the CFPB covers AI in credit decisions, and the FDA covers AI in medical devices.
FTC Deception Framework
The FTC's core test for deception is whether a representation or omission is likely to mislead a consumer acting reasonably under the circumstances, and whether the omission is material. Under this standard:
- If a consumer would reasonably believe they are interacting with a human, and they are actually interacting with AI, the failure to disclose this may be deceptive.
- If AI-generated content is presented as authentic human work (fabricated reviews, synthetic images), failing to disclose the AI origin is likely deceptive.
- If an AI system makes recommendations that a consumer relies on as professional advice, failing to disclose the AI nature may be deceptive.
The FTC's 2023 Policy Statement on AI affirmed that the FTC Act applies fully to AI-enabled deception. The FTC Endorsement Guides (16 C.F.R. Part 255) were updated in 2023 to address AI-generated reviews and endorsements.
States That Require AI Disclosure
Utah — Broadest General Requirement
Utah SB 149 (effective May 1, 2024) requires entities in regulated occupations to disclose when a consumer is interacting with an AI system rather than a human. This is the closest thing to a general AI disclosure requirement enacted in the United States as of June 2026. Utah Code Ann. § 13-2-15. Full Utah reference →
Colorado — High-Risk AI Decisions
Colorado SB 24-205 requires disclosure to consumers when a high-risk AI system makes or substantially assists a consequential decision. Effective February 1, 2026. Colo. Rev. Stat. § 6-1-1701 et seq. Full Colorado reference →
Illinois — AI in Hiring
Illinois requires employers to notify job candidates when AI is used to analyze video interviews (820 ILCS 42). Separate BIPA requirements apply to any biometric data collected by AI systems. Full Illinois reference →
California — Multiple Specific Contexts
California requires disclosure in political advertising (AB 2839, Cal. Elec. Code § 20012), training data transparency from generative AI developers (AB 2013, Cal. Bus. & Prof. Code § 22756), and has automated decision-making notice requirements under CCPA/CPRA. Note: SB 942 was vetoed by Governor Newsom in September 2024. Full California reference →
Contexts That Commonly Trigger a Disclosure Obligation
- AI chatbots representing a business: Consumers who reasonably believe they are speaking with a human have a legitimate expectation of disclosure. Utah law codifies this. FTC deception doctrine applies everywhere.
- AI-generated reviews or testimonials: FTC Endorsement Guides require disclosure that reviews are AI-generated if they could mislead consumers about their authenticity.
- AI in hiring or employment: Illinois (AIUA, 820 ILCS 42) and New York City (Local Law 144) have clear enacted requirements. Maryland has considered AI employment legislation; verify current enacted status. EEOC guidance applies federally.
- AI in political advertising: California, Florida, Georgia, Texas, Wisconsin, and other states require explicit disclosure of AI-generated political ad content.
- AI making consequential decisions: Colorado requires disclosure when high-risk AI assists decisions on credit, employment, housing, healthcare, or education.
- AI-generated voice or likeness: Tennessee's ELVIS Act prohibits unauthorized commercial use of AI-generated voice replicas without consent.
Best Practice Standard
Many small businesses operating in multiple states adopt a uniform disclosure standard. The practical standard that exceeds legal minimums in all states:
- Disclose when consumers are interacting with an AI system rather than a human employee
- Disclose when AI has materially contributed to a decision that affects a consumer
- Label AI-generated content in advertising and marketing materials
- Do not represent AI outputs as human-authored work in contexts where authenticity matters
- Provide a way for consumers to request human review of AI-assisted decisions