Delaware Lawmakers: Please Oppose Misguided Legislation (HB 306)
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Delaware Lawmakers: VOTE NO on HB 306.
Right now, lawmakers in Dover are considering HB 306, a flawed AI bill that could expose Delaware businesses to excessive liabilities and costs without doing anything meaningful to protect everyday citizens. Delaware can protect its residents and encourage responsible AI innovation at the same time, but HB 306 is not the solution.
If passed, the bill could raise prices and discourage technological innovation in Delaware. The bill creates a private right of action, allowing anyone to sue businesses without requiring any proof of harm. This is exactly the kind of legal system abuse that could drive up costs for families and small businesses across the state.
When businesses face litigation risk, the costs could be passed down to everyday residents. If passed, HB 306 could:
- Expose businesses to penalties up to $10 million in a class action and $5 million in an action brought by the Delaware Attorney General — with every chatbot interaction treated as a separate violation
- Allow lawsuits without requiring any proof of harm
- Put small and mid-size Delaware businesses at serious risk, as many cannot afford to defend against costly litigation for harmless mistakes
- Discourage innovation and drive up the cost of goods and services for Delaware families
There are legitimate conversations to be had about AI and consumer protections, and we support thoughtful safeguards and sensible solutions. But HB 306 does not strike this balance in its entirety could do real damage to Delaware families and small businesses without meaningfully protecting anyone.