ASSEMBLY SCIENCE, INNOVATION AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4730

STATE OF NEW JERSEY

DATED:  MARCH 16, 2026

      The Assembly Science, Innovation and Technology Committee reports favorably Assembly Bill No. 4730.

      As reported, this bill requires a person or entity that deploys generative artificial intelligence to communicate or interact with a consumer to provide a clear and conspicuous notice that the consumer is communicating or interacting with generative artificial intelligence if the person or entity deploys the generative artificial intelligence in a manner that would cause a reasonable person to believe the person is communicating or interacting with a human.  A notice provided under the bill is required to be verbal or written and provided at the beginning of an interaction.

      A violation of the bill’s provisions would be an unlawful practice under the consumer fraud act, and would be punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense.  Additionally, a violation of the consumer fraud act can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured.