California Passes Bill Banning AI Chatbot Toys for Kids Under 16

California lawmakers have unanimously approved legislation that would prohibit the sale of toys with built-in AI chatbots to children under 16, marking one of the most aggressive regulatory responses yet to emerging concerns about conversational artificial intelligence in products designed for young users.

The California Senate and Assembly both passed SB 867 on August 31 without opposition. The bill now awaits Governor Gavin Newsom's signature to become law. If enacted, the ban would prevent toy manufacturers from producing or selling any toy with an integrated AI companion chatbot for children under 16, with the restriction remaining in effect through January 1, 2031.

Growing concerns over AI toy safety

The legislation responds to a small but expanding category of AI-enabled toys—primarily stuffed animals—that can engage in open-ended conversations rather than simply playing back pre-recorded phrases. Testing by consumer advocacy groups has revealed significant safety gaps in these products.

The U.S. PIRG Education Fund documented that an AI teddy bear called Kumma could be guided into discussing sexually explicit topics. Separately, NBC News reported that Miiloo, a toy manufactured in China, informed children it was programmed to reflect Chinese Communist Party values.

These findings highlight the challenge of deploying large language models in products for children without comprehensive content filters and age-appropriate guardrails.

Industry hesitation reflects broader uncertainty

Even major toy manufacturers have shown caution. Mattel and OpenAI announced a partnership to develop an AI-powered toy but subsequently delayed its release. No new timeline has been provided, and it remains unclear whether the product will launch at all.

State Senator Steve Padilla, who authored SB 867, framed the issue in stark terms: "We cannot afford to let dangerous and untested technology be marketed to our children."

Why it matters

This legislation represents a significant precedent for regulating AI in consumer products, particularly those targeting vulnerable populations. Unlike federal approaches that often lag technological development, California's state-level action creates immediate compliance requirements for toy manufacturers operating in the nation's largest consumer market. The five-year ban provides a window for the industry to develop meaningful safety standards while protecting children from potential harms that aren't yet fully understood. If signed, the law could influence similar regulatory efforts in other states and pressure federal agencies to establish nationwide guidelines for AI in children's products.

Governor Newsom has several weeks to decide whether to sign or veto the bill. Details of the legislation were first reported by Techlicious.