September 1, 2026 | As previously reported in March and June, state legislation addressing AI companion chatbots in toys continues to move forward in New York and California, with several bills nearing final action.

Key developments include:


New York – AB 11144: This bill would impose a five-year moratorium on the manufacture and sale of toys with AI companion chatbot. The Assembly bill has passed both chambers and is now awaiting action by the governor.


New York – SB 9051: This bill is a broad measure designed to prevent children from using certain aspects of companion chatbots that are deemed harmful. The measure has passed the legislature and is awaiting the governor’s approval.


California — SB 867: The bill is headed to the governor’s desk and would impose a four-year moratorium on the manufacture and sale of toys intended for children under age 16 that contain an AI companion chatbot.


California — SB 1119: Also headed to the governor’s desk, this broader measure would establish requirements and restrictions for products containing AI companion chatbots across sectors. The comprehensive legislation would place particularly stringent requirements on AI companion chatbots used by children.

The Toy Association™ continues to remain actively engaged on AI companion chatbot toy legislation at the state and federal levels and has maintained a consistent position opposed to moratoriums and in support of a study approach to ensure children’s safety. Following discussion with The Toy Association, legislation at the federal level has been modified to adopt a study approach, in lieu of a product ban. This advocacy is complemented by the Association’s work to help the industry navigate emerging AI technologies through its development of Safety Guidelines for AI-Enabled Toys.

The Toy Association will keep members informed of any policy developments regarding AI. For more information on The Toy Association’s advocacy initiatives at the state level or to join the State Government Affairs Committee, members may contact Charlotte Hickcox, senior director of state government affairs (Eastern states), and Lindsey Hueer, senior manager of state government affairs (Western states)