AI companies must disclose when they're selling you sponsored recommendations.
H.R. 10146 — AI Advertising Disclosure Act · Filed by Seth Magaziner (D-RI) · 2 cosponsors · Introduced Aug 24, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill requires AI companies operating chatbots and generative search tools with over 50,000 monthly users to clearly disclose when their responses are influenced by paid commercial arrangements—whether the AI is recommending a product for money, using sponsored training data, or embedding affiliate links. Companies must maintain a registry of these deals, allow users to ask whether a response was sponsored, and cannot hide disclosures through design tricks or pretend the AI is reasoning independently when it is actually promoting something for pay. The FTC enforces the rule and can impose penalties; users and states can also sue for violations.
Why we flagged it
The bill's core mechanism is a mandatory disclosure regime for AI-generated sponsored content, enforced by the FTC and private right of action. It is fundamentally a transparency and consumer-protection measure, not a subsidy, carve-out, or deregulation.
What the text implies
- The 12-month implementation window may be tight for large AI operators to audit and tag all commercial arrangements in real time, potentially creating compliance costs that smaller competitors cannot absorb—market consolidation risk.
- The private right of action ($1,000 per violation, treble damages for willful conduct, attorney's fees) creates incentive for class-action litigation; AI operators may face significant exposure if disclosure systems fail at scale.
The full analysis lists 4 implications of this text.
Who it affects
Citizens gain transparency into AI bias and commercial influence on recommendations they receive, enabling informed decision-making. The bill restricts deceptive practices (hiding sponsorships, denying commercial relationships) and creates enforceable remedies (FTC action, state suits, private right of action with attorney's fees), shifting power toward users and away from AI operators who profit from undisclosed influence.