Tennessee's SB 1580 took effect on July 1, 2026, making it the latest addition to a fast-growing patchwork of state laws regulating AI companion chatbots — a landscape that now spans more than 35 states with active companion-specific legislation.
The Tennessee law prohibits developers from advertising or representing that an AI system can act as a licensed mental health professional. Violations constitute deceptive trade practices under the Tennessee Consumer Protection Act, carrying civil penalties of up to $5,000 per violation. The bill passed the Tennessee Senate 32–0 and the House 94–0 before being signed by Governor Bill Lee on April 1, 2026.
SB 1580 is notably narrower than companion laws in other states: it targets marketing claims rather than the functionality of chatbots themselves. Companion apps can still operate in Tennessee as long as they do not falsely advertise their AI as equivalent to a licensed therapist. But the unanimous legislative support signals that lawmakers are eager to police the boundary between emotional support AI and clinical mental health care.
California and New York Set the Baseline
California's SB 243 (the Companion Chatbot Law), effective January 1, 2026, and New York's S-3008C, effective November 5, 2025, remain the most comprehensive companion-specific regulations currently in force. Both mandate:
- Clear disclosure that users are interacting with AI, not a human, at session start and every 3 hours of continuous use
- Suicide and self-harm detection protocols with crisis service referrals
- Minor-specific protections including bans on sexually explicit content and periodic break reminders
California's law also requires operators to disclose that companion chatbots "may not be suitable for some minors" and to implement reasonable measures preventing generation of sexually explicit material directed at minors. Annual reporting to the Office of Suicide Prevention begins July 1, 2027.
What's Coming: Washington, Oregon, and Beyond
Washington's HB 2225 (the Chatbot Disclosure Act), signed March 24, 2026, targets AI companions specifically — defined as chatbots that sustain "adaptive, human-like relationships" across multiple interactions. It takes effect January 1, 2027 and notably includes a private right of action, meaning individual users can sue violators directly.
Washington's law also mandates hourly disclosure reminders for minors (versus every 3 hours for adults), bans "manipulative engagement" such as excessive praise or mimicking romance, and requires suicide detection protocols.
Oregon's SB 1546 (AI Companions Act), also effective January 1, 2027, adds $1,000 statutory damages per violation and annual filing requirements for crisis referral data.
Other states with companion-specific or chatbot safety laws enacted in 2026 include Nebraska (LB 525, enacted April 14), Idaho (SB 1297, April 2026), Michigan (LEAD Act, targeting minors), and Maine (chatbot disclosure, effective September 2025). At least 10 states will have companion chatbot laws active by mid-2027.
The FTC Is Watching
At the federal level, the FTC's Section 6(b) inquiry, launched September 2025, continues to gather data from seven major companies — including Character Technologies (maker of Character.AI), Meta, OpenAI, Google, Snap, X.AI, and others — on how they measure, test, and monitor negative impacts on children and teens. While no direct enforcement action has been taken yet, the inquiry sets the stage for potential federal action once state-level compliance patterns become clear.
What This Means for Companion App Developers
The regulatory trend is clear: states are converging on a core set of requirements — disclosure, minor safety, suicide detection, and restrictions on professional impersonation — but they implement these with different effective dates, enforcement mechanisms, and penalty structures. A companion app compliant in California may not be compliant in Washington come January 2027, especially given Washington's private right of action.
For companion app operators, the immediate priorities are clear: ensure California and New York compliance is airtight, prepare for Tennessee's marketing restrictions, and begin planning for the 2027 wave in Washington, Oregon, and beyond. The era of unregulated AI companions is — state by state — coming to an end.