California's SB 243 took effect on 1 January 2026, making AI companion services one of the first consumer-AI categories with its own dedicated statute rather than being lumped under general AI rules.
The law requires operators to tell users they are interacting with AI, nudge minors to step away every three hours, trigger a referral-to-crisis-services protocol when self-harm language appears, and report annually on how those safeguards perform. It also gives families a private right of action.
For the companion market this is now a hard cost and trust factor: age assurance, crisis detection, transparency notices and documented safety testing are table stakes for operating in the largest US state.