The Federal Trade Commission (FTC) recently announced Operation AI Comply, an enforcement sweep targeting a diverse swathe of organizations that offer deceptive artificial intelligence (AI) products or use AI products in ways that harm consumers. The campaign demonstrates that the FTC is following through on past promises to crack down on deceptive AI and offers insight into the types of conduct that may attract the agency’s scrutiny. The announcement observes: “The cases included in this…
Sending a clear message, the Federal Trade Commission (FTC) announced the settlement of two separate enforcement actions against data brokers for selling precise location data that may be used to reveal sensitive information. On January 9, the FTC settled with Outlogic, LLC (formerly X-Mode Social) over allegations that it failed to obtain meaningful consent from consumers before collecting and selling data that could be used to track visits to sensitive locations like clinics and places of…
In a month already full of activity with respect to regulation of artificial intelligence (AI) globally, the U.S. Federal Trade Commission (FTC) has continued to assert its role in regulating AI in the US. On November 21, 2023, FTC commissioners unanimously resolved to streamline the FTC’s ability to issue civil investigative demands (CIDs) regarding AI in products and services. FTC staff may now more easily compel release of documents, information, and testimony as part of…
What rights does a consumer have to a digital product that they purchase? What control does an author have over their creative works? What obligations do others have to you when they use your data to develop new products? None of these questions are new, but the recent proliferation of artificial intelligence (AI) tools, particularly generative AI (GenAI) tools, has brought these questions to the forefront of ongoing conversations about the role that AI will…
In brief If you sell goods and services to consumers through automatically renewing payment plans, free or discounted trials that convert into full plans, or other “negative option features” that interpret a consumer’s silence as permission to keep charging them (collectively, “recurring subscriptions”), you should monitor and consider submitting comments on the Federal Trade Commission’s (“FTC’s”) proposed Negative Option Rule. The proposed rule would impose detailed transparency, consent, simple cancellation and annual reminder requirements on companies…
The Federal Trade Commission (“FTC”) issued a warning on Monday about artificial intelligence (“AI”), telling businesses to “keep [their] AI claims in check” and reminding all industries that the Commission will be monitoring baseless or exaggerated marketing around AI. In the post published on the FTC’s website, an attorney for the FTC Division of Advertising Practices reminded businesses that “false or unsubstantiated claims about a product’s efficacy” is the FTC’s “bread and butter.” The FTC’s…
On February 25, 2020, the Federal Trade Commission released its 2019 Privacy and Security Update summarizing the year’s privacy and data security enforcement actions. And, by all accounts, it was a busy year for the privacy enforcement community. Privacy Enforcement Actions The most significant FTC enforcement action in 2019 – in fact, the largest consumer privacy fine ever imposed on any company in the world – was the Commission’s $5 billion penalty against a social…
The Federal Trade Commission (FTC) finalized settlements with five companies for claiming EU-U.S. Privacy Shield or Swiss-U.S. Privacy Shield certification. Those companies included organizations focused on providing workforce solutions, collaboration platforms, artificial intelligence analytics, clinical trial management, and other IT providers. The actions In each case, the FTC alleged that each company wrongfully claimed current certification under either the EU-U.S. Privacy Shield or Swiss-U.S. Privacy Shield. Both frameworks establish a mechanism for companies to legally…
The Federal Trade Commission finalized a settlement with cloud software provider InfoTrax Systems, L.C. following claims that it failed to enact sufficient data security policies, enabling a hacker to access sensitive personal data. The security incident According to the FTC, a hacker was able to access InfoTrax System’s server over 20 times from May 2014 to March 2016, successfully obtaining sensitive personal data, which could be used to commit identity theft and fraud. The FTC…