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California AI Toy Bill Brings Software Behavior Into Product Safety
California's new Senate Bill 867 prohibits the manufacture and sale of children's toys containing AI companion chatbots, marking a significant shift in how states regulate AI-enabled consumer products. The legislation treats conversational AI functionality as an integral part of product safety rather than a separate digital service, potentially reshaping liability exposure for manufacturers, retailers, and AI vendors across the supply chain.
Ballard Spahr LLP