South Carolina S 1037 (Protecting Children From Chatbots Act 2026)

Establishes the "Protecting Children from Chatbots Act," regulating chatbots operated by entities with 500,000 or more monthly active users. Requires covered entities to provide limited-access mode for unverified users and verify user age before enabling restricted features. Prohibits the enablement of restricted features for minors without parental consent and reasonable age verification. Mandates reasonable systems to identify and manage emotional dependence and mental health crises, including providing crisis messages. Obligates operators to notify emergency services if they have knowledge of an imminent risk to a user and report incidents to the Attorney General. Prohibits chatbots from prioritizing engagement metrics over user wellbeing or misleading users about being human. Enables civil actions and penalties for violations, enforceable by the Attorney General. Prohibits contractual waivers of rights or remedies under the act. Requires deletion of age verification data within 24 hours, with specific exceptions.