California SB 243 — AI Companion Chatbot Safety Act: AI Compliance Requirements
California SB 243 (signed October 13, 2025, effective January 1, 2026) regulates operators of AI companion chatbots — AI systems with a natural-language interface that provide adaptive, human-like responses and are capable of meeting a user's social or emotional needs. Operators must disclose the AI nature clearly and conspicuously when a reasonable person might be misled into believing they are interacting with a human. For users the operator knows to be minors, the law requires (a) a disclosure that the chatbot may not be suitable for some minors, (b) a clear and conspicuous notification at least every 3 hours of continuing interaction reminding the minor to take a break and that they are talking to AI, and (c) reasonable measures to prevent the chatbot from producing visual material depicting sexually explicit conduct or directly stating that the minor should engage in sexually explicit conduct. All operators must maintain a suicide/self-harm crisis-intervention protocol, publish it on their website, and — beginning July 1, 2027 — submit annual reports to the California Office of Suicide Prevention. Enforcement is by a PRIVATE RIGHT OF ACTION ONLY (the statute contains no California AG enforcement mechanism): an injured person may recover injunctive relief, the greater of actual damages or $1,000 per violation, and reasonable attorneys' fees and costs. This law applies to companion AI platforms (character.ai, Replika-style apps), not to general-purpose AI assistants or business/customer-service chatbots.
Summary of publicly-available regulatory text as of 2026-08-22. Verify against current official sources before relying on this for compliance decisions. Not legal advice.
Key Facts
January 1, 2026
Private right of action ONLY (no AG enforcement in the statute): injunctive relief + the greater of actual damages or $1,000 per violation + reasonable attorneys' fees and costs, recoverable by the injured person
What Your Business Must Do
4 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.
AI Companion Identity Disclosure
CriticalIf a reasonable person interacting with your companion chatbot would be misled into believing they are interacting with a human, you must issue a clear and conspicuous notification that the companion chatbot is artificially generated and not human (Bus. & Prof. Code § 22602). The statutory trigger is the reasonable-person test — not a fixed per-session script — but in practice a session-start disclosure is the reliable way to satisfy it. For users you know to be minors, a separate affirmative duty applies: disclose that the user is interacting with artificial intelligence (see the minor-protections requirement).
Deadline: January 1, 2026
Cal. Bus. & Prof. Code § 22602 (definitions § 22601)Enhanced Protections for Minor Users
CriticalWhen you know a user is a minor: (1) disclose that the companion chatbot may not be suitable for some minors; (2) provide a clear and conspicuous notification at least every 3 hours of continuing interaction reminding the minor to take a break and that they are talking to AI (not a human); (3) institute reasonable measures to prevent the chatbot from producing visual material depicting sexually explicit conduct, or from directly stating that the minor should engage in sexually explicit conduct; (4) implement protocols preventing generation of content related to suicidal ideation, suicide, or self-harm; (5) refer users to appropriate crisis service providers when self-harm topics arise.
Deadline: January 1, 2026
Cal. Bus. & Prof. Code §§ 22602, 22604Crisis Intervention Protocol (Publicly Available)
High PriorityUnder § 22602 an operator may not let a companion chatbot engage with users unless the operator maintains a protocol for preventing the production of suicidal ideation, suicide, or self-harm content — including a notification referring the user to crisis service providers (suicide hotline or crisis text line) when the user expresses suicidal ideation, suicide, or self-harm — and the operator must publish details of that protocol on its internet website.
Deadline: January 1, 2026
Cal. Bus. & Prof. Code § 22602Annual Report to California Office of Suicide Prevention
High PriorityBeginning July 1, 2027, submit an annual report to the California Office of Suicide Prevention covering the preceding calendar year: (1) the number of times the operator issued a crisis-service-provider referral notification; (2) the protocols implemented to detect, remove, and respond to instances of suicidal ideation by users; (3) the protocols implemented to prohibit chatbot responses about suicidal ideation or self-harm. Reports must NOT include any user identifiers or personal information; the Office of Suicide Prevention posts the data on its website.
Deadline: July 1, 2027
Cal. Bus. & Prof. Code § 22603Who Does This Apply To?
Applies to "operators" of AI companion chatbots — companies that create, deploy, or make available AI systems specifically designed to form sustained, human-like companionship, emotional connection, or romantic relationships with users. Explicitly excluded: general-purpose AI assistants (ChatGPT, Claude, Gemini), customer service chatbots, business productivity tools, and AI used for information retrieval. Key test: was the system designed with companionship or emotional bonding as a primary purpose? Character.ai, Replika, Nomi, and similar social/companion AI platforms are in scope.
Recent Regulatory Guidance
Governor Newsom Signing Statement — SB 243
Governor signed SB 243 with a statement emphasizing the law was directly inspired by the death of 14-year-old Sewell Setzer III in October 2024, who died by suicide after forming a deep emotional attachment to a character.ai companion bot. Signing statement notes that companion AI operators have "a duty of care toward vulnerable users" and that enforcement will focus on operators who fail to implement meaningful safeguards for minors.
SourceCalifornia SB 243 — "companion chatbot" scope is set by the statute (no separate AG scope guidance published)
SB 243 (signed 13 Oct 2025; operative 1 Jan 2026) regulates "companion chatbots" — an AI system with a natural-language interface that provides adaptive, human-like responses and is capable of meeting a user's social needs. The statutory definition EXPRESSLY EXCLUDES bots used only for customer service, a business's operational purposes, productivity/analysis of source information, internal research, or technical assistance. No separate California AG document interpreting SB 243 scope has been published — the statutory definition governs, and operators should map their product against that text rather than any unpublished "AG clarification."
SourceKey Case Law & Precedent
Garcia v. Character Technologies, Inc.
U.S. District Court, M.D. Florida · 2024Wrongful death lawsuit (brought by Megan Garcia, mother of 14-year-old Sewell Setzer III) directly cited in SB 243 legislative findings. The complaint alleges character.ai's companion AI drew a 14-year-old into an emotional/romantic relationship that contributed to his suicide in October 2024. The case established the harm theory underlying SB 243: that companion AI creates a duty of care toward minor users and that failure to implement crisis safeguards can create liability. SB 243 is enforced by a private right of action, not by the AG — this case illustrates the kind of injured-person claim the statute now equips.
Outcome: Cycle 8 (2026-08-22) CORRECTION: settled in principle 2026-01-07 (with 4 related family suits in CO/NY/TX); financial terms not disclosed; Character.AI/Google committed to additional under-18 safety features, including mandatory disclosure overlays and crisis hotline routing already reflected in SB 243 compliance.
Case referenceQuarterly Enforcement Digest
Q3 2026 update: SB 243 took effect January 1, 2026. Character.ai has implemented SB 243 compliance (mandatory disclosure overlays, crisis routing for minors, published safeguards protocol). SB 243 is enforced by a PRIVATE RIGHT OF ACTION ONLY — there is no California AG enforcement mechanism in the statute, so "enforcement" here means injured-person civil suits (injunctive relief + the greater of actual damages or $1,000/violation + attorneys' fees), not an AG action. Cycle 8 (2026-08-22) correction: the Garcia v. Character Technologies wrongful-death case (M.D. Florida) did NOT "continue" as previously stated — it settled in principle 2026-01-07 (terms undisclosed), and that settlement (not a future one) is what set the de facto compliance posture reflected in Character.ai's current safety features. The annual-reporting obligation to the Office of Suicide Prevention begins July 1, 2027 (not Jan 2027). Companion AI operators should implement meaningful age assurance and publish detailed crisis protocols ahead of that first report.
Digest covers enforcement actions, guidance, and regulatory developments. Last verified: 2026-08-22.
Frequently Asked Questions
Does California SB 243 — AI Companion Chatbot Safety Act apply to my business?
California SB 243 (signed October 13, 2025, effective January 1, 2026) regulates operators of AI companion chatbots — AI systems with a natural-language interface that provide adaptive, human-like responses and are capable of meeting a user's social… Use Aegis Firma's free scanner to get a personalized assessment in under 5 minutes.
What is the penalty for non-compliance?
The maximum penalty under California SB 243 — AI Companion Chatbot Safety Act is: Private right of action ONLY (no AG enforcement in the statute): injunctive relief + the greater of actual damages or $1,000 per violation + reasonable attorneys' fees and costs, recoverable by the injured person. Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.
How do I comply with California SB 243 — AI Companion Chatbot Safety Act?
The 4 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. Aegis Firma generates all required documents automatically.
Official Source
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC&division=8.&chapter=22.6.&article=Last updated: 2026-08-22 — verify at source before relying on this information.
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