Companies that design AI tools that deceive consumers could face action from the U.S. Federal Trade Commission, according to FTC Chair Lina Khan.
During a congressional hearing today, Khan said they have already encountered ways AI can "turbocharge fraud and scams."
- During the hearing, Khan and two FTC commissioners — Rebecca Slaughter and Alvaro Bedoya — fielded questions about how the agency is protecting Americans from fraud and other unfair practices, including when it comes to AI.
- Khan said the "turbocharging of fraud and scams that could be enabled by these [AI] tools are a serious concern."
- FTC technologists are now working to identify and oversee AI issues in both competition and consumer protection, the chairwoman noted.
- Bedoya noted that companies cannot simply state that they have a "black box" algorithm that cannot be explained.
- Companies using AI are on the hook for committing unfair and deceptive acts or violating civil rights laws, he said.
- Slaughter said there is a lot of noise around AI right now, and it's important because it is in revolutionary technology in some ways."
- FTC's obligation remains "to do what we've always done" and not to shy away from this "new revolutionary technology."
- The remarks come after an FTC lawyer released an update warning marketers and advertisers to keep their AI product claims "in check."
- As AI hype occurs across many products, the FTC is enforcing its rules regarding "false or unsubstantiated claims about a product's efficacy," the update said.
