Congress Seeks to Ban AI Companies from Selling Your Health Data

A newly revamped data privacy bill in Congress aims to prohibit artificial intelligence companies from selling sensitive health data, including information collected through chatbot services. The proposed legislation targets the transfer of such data to third-party data brokers, closing a loophole that currently allows many AI firms to share or monetize personal health information without clear consent. ## Key Provisions of the Bill The bill, updated for the 2026 legislative session, specifically addresses the growing use of AI-powered health and wellness chatbots, mental health apps, and virtual assistants. These platforms often collect intimate user data—such as emotional states, medical queries, and biometric information—that may not be covered by existing health privacy laws like HIPAA (Health Insurance Portability and Accountability Act). Under the new proposal, AI companies would be forbidden from selling or licensing health-related data to data brokers unless users give explicit, opt-in permission. The bill also imposes stricter transparency requirements, mandating that companies disclose exactly what health data they collect, how it is used, and with whom it is shared. ## Why This Matters in 2026 The urgency of this bill has grown as AI adoption in healthcare and wellness has skyrocketed. By early 2026, millions of Americans have used generative AI for health advice, symptom checking, or therapy-like conversations. Consumer advocacy groups have raised alarms that much of this data is being sold to brokers who then package it for insurers, employers, or marketers—potentially leading to discrimination or higher premiums. Unlike medical records held by doctors or hospitals, data collected by AI chatbots often falls into a regulatory gray zone. The new bill seeks to extend consumer protections to these emerging technologies. ## Industry and Political Reactions Supporters of the bill, including several bipartisan senators, argue that strong federal action is necessary to restore trust in AI and prevent a “Wild West” of health data exploitation. Tech industry groups, however, have warned that overly broad restrictions could stifle innovation and limit the development of personalized health AI tools. If passed, the legislation would mark one of the most significant expansions of health data privacy in the United States, aligning federal rules more closely with strict state laws like California’s Consumer Privacy Act (CCPA) and recent European Union regulations. ## Next Steps The bill is currently under committee review. A vote on the floor is expected later in 2026. Should it become law, AI companies would have a limited compliance window to adjust their data-sharing practices or face substantial fines.

via The Verge AI