Maine Law Now Requires Limited Disclosures of Artificial Intelligence Technology

Maine has joined the list of U.S. states requiring disclosures of Artificial Intelligence (A.I.) technologies. This is due to a new law signed by Governor Janet Mills on June 12, 2025, the Act to Ensure Transparency in Consumer Transactions Involving Artificial Intelligence (the “Act”).

The Act requires businesses and individuals to disclose the use of “artificial intelligence chatbots” and other technologies that may mislead consumers into thinking those tools are real human beings. Where a business or person uses these technologies in ways that could deceive a “reasonable consumer” into thinking the technology is a real person, consumers must be notified that they are not interacting with humans.

To what types of technology does the Act apply?

The Act applies to “artificial intelligence chatbots.” Those are further defined as software applications, web interfaces or computer programs that simulate “human conversation and interaction through textual or aural communications.” The law also covers “any other computer technology” that may dupe consumers into mistaking the tools for human conversation partners. The Act therefore appears to apply to many tools used by businesses: websites widgets, mobile apps, and even callbots (voice assistants that can entertain human phone calls).

Businesses using the technologies subject to the Act need not disclose their usage in all cases. The law requires disclosure only where a “reasonable consumer” may be deceived. This allows businesses to make judgment calls about whether disclosure is required, which involves a holistic view of User Experience and how people in fact interact with the businesses. This same fact-specific approach also means that many companies will likely choose simply to disclose in all cases—which some already do.

What does disclosure look like (or sound like)?

The Act requires “clear and conspicuous” disclosures. The statute does not detail what this standard means, but courts are likely to follow rules of contract law that have emerged for privacy notices. For example, those who use these technologies in digital form (web, software email) should assume that notices must be written, must be in font no smaller than surrounding font on a screen, and not be buried “below the fold” of a popup box. Providers should consider highlighting the notices with bold or all-caps font as well. In the case of voice-only technology, outbound calls should feature audio disclosures at the start of the call and not the end.

Consequences of violations

A violation of the new Maine law is a violation of the Maine Unfair Trade Practices Act (UTPA). The Maine Attorney General may bring action to enforce the Act and for civil penalties of up to $1,000 per violation. Consumers may even bring their own actions for damages if they can show financial harm due to the violation.

Practical advice for businesses

What should businesses do now to ensure their compliance with the Act? We recommend a few measures.

1. Review existing websites, mobile apps and other public-facing systems to confirm whether you use any tools that could be subject to the Act. Do not limit your assessment to tools that you might think of as “A.I.,” because the new law applies more broadly to any tools that could deceive consumers. Limiting your review to “chatbots” would also fall short, because there are many other tools that can interact with consumers.
2. If you use technologies subject to the Act, determine whether disclosures are required. As noted above, you do not need to disclose all interactive technologies—only those that could mislead a “reasonable consumer” into thinking they are dealing with a real person. You may well decide disclosure is easier and less risky than making a judgment call on this question.
3. If you will make disclosures, make them in the manner the Act requires. Doing so requires some attention to the ways that consumers use and navigate your website. Give thought to the many ways that consumers use your website or other channels. “Clear and conspicuous” can mean one thing to a person browsing your site on a mobile app and another to the person using a table or laptop.
4. Outsource carefully. If you hire an outside website developer, discuss with them whether and how they will configure your site with chatbots or other tools that trigger the Act. Confirm who (between you and your outside developer) is responsible for ensuring technologies integrated with your website comply with the statute.
5. Think beyond websites. Most of the advice above applies to websites with integrated chatbots, as these are the most commonly used type of business technologies that could be subject to the new Maine Act. But if you use callbots, mobile aps or other technologies that interact with consumers, review those as well.

The Maine Act in Context

While a few states (notably Colorado and Texas) have passed robust A.I. regulatory statutes, most U.S. states passing A.I.-specific laws have started by simply requiring consumer disclosures. Maine now falls into the latter category.

Maine’s legislature this year did consider some more prescriptive A.I.-specific bills. They included proposals to restrict how health insurance carriers could use A.I. in coverage decisions or how landlords could use A.I. to set rents. But so far, those measures have not succeeded.

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For more information about the Act to Ensure Transparency in Consumer Transactions Involving Artificial Intelligence, please contact Adam Nyhan.

Adam Nyhan is a Partner in Verrill’s Intellectual Property practice. He advises developers and deployers of A.I. in technology licensing, development and compliance matters. He represents Software-as-a-Service providers and customers in privacy and commercial negotiations.