California Governor Gavin Newsom signed SB 243 in October 2025, making California the first state to regulate AI companion chatbots. It took effect January 1, 2026 and requires operators to implement safety protocols for AI companions. Individuals who believe they have been injured by violations can sue for injunctive relief, damages and attorney's fees.
Newsom vetoed a broader bill, AB 1064, and said he would develop a kids' AI safety bill building on the SB 243 framework. State attorneys general are now using consumer-protection law against OpenAI, as the October 14 suits show.
Source: TechCrunch