States and federal agencies scramble to regulate AI therapy apps
As AI‑driven mental‑health chatbots proliferate, several U.S. states (including Illinois, Nevada and Utah) enacted laws this year that restrict or ban AI therapy products, while federal regulators — the FTC and the FDA — have opened inquiries and scheduled reviews to evaluate risks and oversight needs. The reporting (Sept. 29, 2025) documents a patchwork of state approaches, named companies under FTC review, fines tied to state bans, and an upcoming FDA advisory‑committee meeting on Nov. 6, 2025 to examine generative AI‑enabled mental‑health devices.
AI & Tech
Health
🔍 Key Facts
- Illinois and Nevada passed 2025 laws banning products that claim to provide mental‑health treatment, with civil penalties cited up to $10,000 (Illinois) and $15,000 (Nevada).
- Utah enacted limits requiring therapy chatbots to protect users’ health information and disclose they are not human; Pennsylvania, New Jersey and California are considering regulation.
- The Federal Trade Commission opened inquiries into seven chatbot companies (parents of Instagram/Facebook, Google, OpenAI/ChatGPT, Grok/X, Character.AI and Snapchat), and the FDA set an advisory committee for Nov. 6, 2025 to review generative AI‑enabled mental‑health devices.
📰 Sources (1)
Regulators struggle to keep up with the fast-moving AI
New information:
- Illinois and Nevada passed 2025 laws banning products that claim to provide mental‑health treatment, with civil penalties cited up to $10,000 (Illinois) and $15,000 (Nevada).
- Utah enacted limits requiring therapy chatbots to protect users’ health information and disclose they are not human; Pennsylvania, New Jersey and California are considering regulation.
- The Federal Trade Commission opened inquiries into seven chatbot companies (parents of Instagram/Facebook, Google, OpenAI/ChatGPT, Grok/X, Character.AI and Snapchat), and the FDA set an advisory committee for Nov. 6, 2025 to review generative AI‑enabled mental‑health devices.