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 Amending the act of December 17, 1968 (P.L.1224, No.387), entitled "An act prohibiting unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce, giving the Attorney General and District Attorneys certain powers and duties and providing penalties," further providing for definitions and for unlawful acts or practices and exclusions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 2(4)(xxi) of the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, is amended, clause (4) is amended by adding a subclause and the section is amended by adding a clause to read: Section 2. Definitions.--As used in this act. * * * (4) "Unfair methods of competition" and "unfair or deceptive acts or practices" mean any one or more of the following: * * * (xxi) Failing to comply with the terms of a written 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 guarantee, warranty or policy that is generated by a consumer- facing artificial intelligence utilized by a business. [(xxi)] (xxii) Engaging in any other fraudulent or deceptive conduct which creates a likelihood of confusion or of misunderstanding. * * * (14) "Artificial intelligence" means an artificial system that: (i) performs tasks under varying and unpredictable circumstances without significant human oversight or can learn from experience and improve such performance when exposed to data sets; (ii) is developed in any context, including software or physical hardware; and (iii) solves tasks requiring human-like perception, cognition, planning, learning, communication or physical action, or is designed to think or act like a human, including a cognitive architecture or neural network, or act rationally, including an intelligent software agent or embodied robot that achieves goals using perception, planning, reasoning, learning, communication, decision making or action, or a set of techniques, including machine learning, that is designed to approximate a cognitive task. Section 2. Section 3(a) of the act is amended to read: Section 3. Unlawful Acts or Practices; Exclusions.-- (a) Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce as defined by subclauses (i) through [ (xxi)] (xxii) of clause (4) of section 2 of this act and regulations promulgated under section 3.1 of this act are hereby declared unlawful. The provisions of this 20250HB0518PN0511 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 act shall not apply to any owner, agent or employe of any radio or television station, or to any owner, publisher, printer, agent or employe of an Internet service provider or a newspaper or other publication, periodical or circular, who, in good faith and without knowledge of the falsity or deceptive character thereof, publishes, causes to be published or takes part in the publication of such advertisement. * * * Section 3. This act shall take effect in 60 days. 20250HB0518PN0511 - 3 - 1 2 3 4 5 6 7 8 9