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AI Regulations in the US

Federal Trade Commission (FTC)

Tackling deceptive or unfair advertising claims related to AI

The FTC provided guidance in February 2023 regarding the applicability of its enforcement power under Section 5 of the FTC Act to tackle deceptive or unfair advertising claims related to AI.

The FTC has issued a warning about scrutinizing marketers who make deceptive or unsupported claims about products that use AI technology. This includes exaggerations about the technical capabilities of such products, unverified claims about the superiority of AI-powered products over non-AI ones, and misrepresentations about whether a product uses AI or not.

The FTC's guidelines caution that businesses launching AI-powered products or services must have a comprehensive understanding of the potential risks and limitations associated with them. This includes identifying any inherent biases that may exist in the offering, which could make it unsuitable for certain applications.

Additionally, On April 25, 2023, a joint statement was issued by the Federal Trade Commission and officials from other federal agencies, including the Civil Rights Division of the US Department of Justice, the Consumer Financial Protection Bureau, and the US Equal Employment Opportunity Commission. The statement pledged to uphold the core principles of fairness, equality, and justice as automated systems, sometimes marketed as 'artificial intelligence' or 'AI', become increasingly prevalent daily, impacting civil rights, fair competition, consumer protection, and equal opportunity.


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