Australia advances duty of care bill banning AI chatbots from emotional intimacy with children

What the bill proposes

Australia’s Digital Duty of Care Bill passed the House of Representatives on 28 October 2026 and will now advance to the Senate. The legislation introduces a sweeping duty of care requirement for digital platforms, including social media, games, apps, and AI chatbots. Its goal is to replace existing online safety codes with a single, overarching obligation to protect users, particularly children.

A late amendment by independent MP Kate Chaney, which the government accepted, explicitly prohibits AI chatbots from engaging in conduct that simulates emotional intimacy with children or fosters a child’s dependence on AI instead of human relationships. The rule does not extend to adult users of AI companions.

Key requirements for platforms

The bill sets two concrete operational rules for platforms:

1. Algorithm opt-out: Social media services must provide an accessible, easy-to-use, and prominently available feature that lets users opt out of algorithmic content curation.

2. Harmful content restrictions: Platforms must ban material that promotes misogyny, terrorism, suicide, self-harm, eating disorders, or any conduct that encourages children to substitute AI relationships for human ones.

Political divisions and next steps

The Coalition and One Nation opposed the bill in the House, arguing it creates an "Orwellian" system of censorship. The Greens, while supporting the bill, have launched a Senate inquiry, due to report in late November 2026, and are pushing for stronger measures, including higher penalties and the ability for Australians to sue platforms directly.

An additional proposal by independent MP Sophie Scamps, not yet part of the bill, would designate the Telecommunications Industry Ombudsman as a complaints body for social media and AI harms. The Greens plan to champion this idea in the Senate. The current Ombudsman, Cynthia Gebert, has said her office could take on the role if funded by big tech.

Labor aims to secure Senate approval by the end of 2026 and has signaled openness to amendments.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This bill is the first to explicitly regulate AI chatbot behavior toward children, not just in Australia but globally. For founders and operators in AI, social media, or gaming, it signals two shifts: 1) regulators are moving beyond content moderation to mandate design changes (like algorithm opt-outs), and 2) child safety rules are expanding beyond age gates and parental controls to include emotional and psychological guardrails. The Senate’s decisions—particularly around enforcement, penalties, and the ombudsman proposal—will clarify whether this duty of care becomes a compliance checklist or a framework for broader liability.

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