Lawmakers want to ban AI companies from selling health data

The Verge reports that Senator Elizabeth Warren and Representative Mary Gay Scanlon are preparing an updated Health and Location Data Protection Act for the AI era. The bill would ban companies from selling Americans sensitive health and location data to data brokers, including information people share with chatbots such as ChatGPT or Claude. The proposal expands a 2022 version that focused on data brokers and would task the FTC with rules and enforcement. The story matters because AI labs are pushing deeper into health products while U.S. privacy rules still leave many chatbot disclosures governed mainly by company policies.

Key details: Published June 29, 2026 by The Verge, Senator Elizabeth Warren and Representative Mary Gay Scanlon are backing the updated bill, The bill covers health and location data entered into AI systems, The FTC would be tasked with rulemaking and enforcement.

Why it matters: AI chatbots are becoming a new health-data collection surface, and privacy law is starting to chase that behavior directly.