A new legislative proposal in Virginia aims to bolster consumer protection in the face of rising concerns over artificial intelligence-related fraud and abuse. House Bill 2411, introduced by Delegate Glass on January 8, 2025, seeks to amend the existing framework of the Division of Consumer Counsel, enhancing its responsibilities to address the complexities introduced by modern technology.

The bill outlines several key provisions designed to empower the Division of Consumer Counsel, which operates within the Department of Law. Among its expanded duties, the Division will now be tasked with investigating consumer complaints specifically related to artificial intelligence, a growing area of concern as technology increasingly intersects with daily transactions. This includes establishing a statewide toll-free hotline for consumers to report violations and enhancing communication channels through digital platforms.

The introduction of this bill comes at a time when many consumers are expressing anxiety over the potential for fraud and abuse facilitated by AI technologies. By equipping the Division with the necessary tools to address these issues, the bill aims to ensure that consumer interests are safeguarded in an evolving marketplace.

While the bill has garnered support for its proactive approach to consumer protection, it has also sparked debates regarding the feasibility of implementing such measures. Critics have raised concerns about the potential costs associated with establishing and maintaining the hotline and other communication mechanisms. Additionally, there are questions about the Division's capacity to effectively manage the increased workload that may arise from handling AI-related complaints.

The implications of HB2411 extend beyond consumer protection; they touch on broader economic and technological trends. As Virginia positions itself as a hub for innovation, the bill reflects a commitment to balancing technological advancement with consumer rights. Experts suggest that if passed, this legislation could serve as a model for other states grappling with similar challenges.

As the General Assembly reviews the bill, its future remains uncertain. However, the discussions surrounding HB2411 highlight a growing recognition of the need for robust consumer protections in an increasingly digital world. The outcome of this legislative effort could significantly impact how Virginia residents navigate the complexities of consumer transactions in the age of artificial intelligence.