HB 518 — An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions and for unlawful acts or practices and exclusions.

PRINTER'S NO.   511

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 518
                                                Session of
                                                  2025

     INTRODUCED BY C. WILLIAMS, HANBIDGE, PIELLI, JAMES, STAATS,
        PICKETT AND ARMANINI, FEBRUARY 5, 2025

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, FEBRUARY 5, 2025


                                     AN ACT
 1   Amending the act of December 17, 1968 (P.L.1224, No.387),
 2      entitled "An act prohibiting unfair methods of competition
 3      and unfair or deceptive acts or practices in the conduct of
 4      any trade or commerce, giving the Attorney General and
 5      District Attorneys certain powers and duties and providing
 6      penalties," further providing for definitions and for
 7      unlawful acts or practices and exclusions.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.    Section 2(4)(xxi) of the act of December 17, 1968
11   (P.L.1224, No.387), known as the Unfair Trade Practices and
12   Consumer Protection Law, is amended, clause (4) is amended by
13   adding a subclause and the section is amended by adding a clause
14   to read:
15      Section 2.    Definitions.--As used in this act.
16      * * *
17      (4)     "Unfair methods of competition" and "unfair or deceptive
18   acts or practices" mean any one or more of the following:
19      * * *
20      (xxi)    Failing to comply with the terms of a written
 1   guarantee, warranty or policy that is generated by a consumer-
 2   facing artificial intelligence utilized by a business.
 3      [(xxi)] (xxii)     Engaging in any other fraudulent or deceptive
 4   conduct which creates a likelihood of confusion or of
 5   misunderstanding.
 6      * * *
 7      (14)    "Artificial intelligence" means an artificial system
 8   that:
 9      (i)    performs tasks under varying and unpredictable
10   circumstances without significant human oversight or can learn
11   from experience and improve such performance when exposed to
12   data sets;
13      (ii)    is developed in any context, including software or
14   physical hardware; and
15      (iii)     solves tasks requiring human-like perception,
16   cognition, planning, learning, communication or physical action,
17   or is designed to think or act like a human, including a
18   cognitive architecture or neural network, or act rationally,
19   including an intelligent software agent or embodied robot that
20   achieves goals using perception, planning, reasoning, learning,
21   communication, decision making or action, or a set of
22   techniques, including machine learning, that is designed to
23   approximate a cognitive task.
24      Section 2.    Section 3(a) of the act is amended to read:
25      Section 3.    Unlawful Acts or Practices; Exclusions.--(a)
26   Unfair methods of competition and unfair or deceptive acts or
27   practices in the conduct of any trade or commerce as defined by
28   subclauses (i) through [(xxi)] (xxii) of clause (4) of section 2
29   of this act and regulations promulgated under section 3.1 of
30   this act are hereby declared unlawful. The provisions of this

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1   act shall not apply to any owner, agent or employe of any radio
2   or television station, or to any owner, publisher, printer,
3   agent or employe of an Internet service provider or a newspaper
4   or other publication, periodical or circular, who, in good faith
5   and without knowledge of the falsity or deceptive character
6   thereof, publishes, causes to be published or takes part in the
7   publication of such advertisement.
8      * * *
9      Section 3.   This act shall take effect in 60 days.




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