March 24, 2026 | State and federal policymakers are increasingly focused on how artificial intelligence (AI) is being integrated into children’s products, including toys. Recent legislative activity signals growing attention to safety, transparency, and the appropriate use of AI-driven features in consumer products, particularly those designed to interact directly with minors.

State Activity Accelerates
More than 100 AI-related bills have been introduced across 30+ states since December, many of which could impact devices intended for use by children. Two pending proposals in California and New York specifically address AI-enabled toys, while broader legislation in states like Oregon and Washington establishes guardrails that could apply to AI-powered products across all categories.

Key state developments include:

• Oregon (SB 1546 – legislation passed, pending Governor Tina Kotek signature in the coming weeks):
• Requires clear notice that users are interacting with AI, not a human
• Mandates protocols to detect self-harm or suicidal ideation, including crisis referrals and intervention based on clinical best practices
• Prohibits sexually explicit content
• Restricts chatbots from simulating emotional dependence or romantic relationships, and bans engagement-based reward systems
• Requires periodic reminders (every three hours) to take breaks from AI interaction
• Requires annual public reporting on crisis interventions and safety protocols
  
  

• Washington (HB 2225 – legislation passed, pending Governor Bob Ferguson signature on March 24):
• Requires AI disclosure, including hourly reminders that users are interacting with AI
• Mandates safeguards to detect and respond to self-harm, including eating disorders, and provide crisis resources
• Prohibits sexually explicit content
• Restricts manipulative engagement tactics, including fostering emotional attachment, mimicking romantic relationships, or encouraging isolation from family or trusted adults
  
  

• Pending toy-specific legislation:
• New York (SB 9408): Would ban the sale of “chatbot toys” entirely and establish a study committee in four years to assess long-term impacts on children
• California (SB 867): Would impose a four-year moratorium on toys containing “companion chatbots,” defined as AI systems capable of sustaining human-like relationships with users
  
  

White House Releases Federal Framework
On March 20, the White House released a National Policy Framework for Artificial Intelligence, outlining legislative priorities for Congress. Among the high-level areas addressed are:

• Strengthening protections for minors interacting with AI systems
• Empowering parents with tools to manage children’s digital experiences
• Encouraging safety features to mitigate risks such as self-harm or exploitation
• Avoiding a fragmented, state-by-state regulatory landscape while preserving states’ ability to address local concerns
  
  

Toy Association Advocacy
In addition to tracking AI policy movement at the state and federal levels, The Toy Association is working in collaboration with member companies and outside counsel to develop rigorous, voluntary AI guidelines specific to the toy industry.

Toy Association leadership will also be in Washington, DC on April 6 to 7 to meet with Administration officials and members of Congress to address the Association’s priorities on behalf of members, including AI. The Toy Association will also host its 2026 DC Fly-In and Annual Day of Play on Capitol Hill from June 9 to 11 to bring members together with lawmakers and congressional staff to elevate the importance of play, highlight the U.S. toy industry’s economic and cultural impact, and engage directly on key policy priorities.

The Toy Association will keep members informed of any policy developments regarding AI. For more information on The Toy Association’s federal advocacy initiatives, members may contact Maria Sierra, vice president of government affairs.