FTC (Federal Trade Commission) has renewed its warnings that those unfounded outsized claims about AI in products and services will not be tolerated. AI makers and AI marketers are fully on-notice, warns AI Ethics and AI Law.
Into the zany use of AI-proclaimed proficiencies that border on or outright verge into falsehoods and deception steps the long arm of the law, namely the FTC and other federal, state, and local agencies .
For example, L’Oreal got in trouble for advertising that their Paris Youth Code skincare products were “clinically proven” to make people look “visibly younger” and “boost genes”, the gist of such claims turned out to not be backed by substantive scientific evidence and the FTC took action accordingly. Another prominent example consisted of Volkswagen advertising that their diesel cars utilized “clean diesel” and ergo supposedly emitted quite low amounts of pollution.
. The FTC Act prohibits unfair or deceptive practices. That would include the sale or use of – for example – racially biased algorithms.”. The FCRA comes into play in certain circumstances where an algorithm is used to deny people employment, housing, credit, insurance, or other benefits.”.
Let the lawyers figure that out, some AI marketers say. Meanwhile, full steam ahead. If someday the FTC or some other governmental agency knocks at the door, so be it. The money to be made is now. Perhaps put a dollop of the erstwhile dough into a kind of trust fund for dealing with downstream legal issues. For now, the money train is underway, and you would be mindbogglingly foolish to miss out on the easy gravy to be had.
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