New Mexico Democrats propose revamped consumer protection, digital safety laws

New Mexico Attorney General Raúl Torrez, state Rep. Linda Serrato (D-Santa Fe), and Democratic gubernatorial nominee Deb Haaland announced plans to modernize the state's consumer protection law and create new online safety regulations. They intend to introduce the Consumer Protection and Fair Pricing Act next legislative session, which would update penalties under the state's decades-old 1970 Unfair Practices Act from a maximum of $5,000 per violation to $50,000, with further increases when companies target children or vulnerable populations. The bill would also address personalized pricing through AI, ban manipulative design elements like ticking clocks on online carts, and prohibit landlords from using AI to set discriminatory rent rates. Torrez cited a recent $375 million jury judgment against Meta, noting that with inflation-adjusted penalties the amount would have been approximately $3 billion. Serrato also plans to sponsor an Online Safety and Accountability Act focused on digital content aimed at children, including AI companion chatbots and addictive design features. The bill would mandate safety precautions such as requiring developers to disclose that AI programs do not represent real people, implementing youth-specific defaults including a two-hour daily limit and chronological feeds, and banning AI chatbots from sexualizing minors or discouraging them from seeking behavioral healthcare. A new Office of Online Safety Monitor within the New Mexico Department of Justice would investigate violations, which could carry penalties up to $150,000 for repeat offenders.

(Source：Source New Mexico)