Vaishali Rao Analyzes in ARM Compliance Digest: FTC Takes Steps to Protect Consumers from AI Deepfakes

In the March 4, 2024, edition of the ARM Compliance Digest, Hinshaw Partner Vaishali Rao discussed the Federal Trade Commission's (FTC) proposed final rule that would prohibit scammers from creating deepfakes and impersonating businesses or government agencies.

Rao writes in her column:

The Federal Trade Commission’s bread and butter consumer protection cases have always been true scammers, including entities that falsely imply a connection with the government.

In the past, the FTC has used its Section 5 (or unfair or deceptive trade practices) authority to bring those cases, but since the 2021 AMG Capital Management Supreme Court ruling, those cases have become harder for the FTC to achieve their goals.

This rule would solidify the FTC’s ability to return money to consumers who are victim to impersonation scams. It is also a clean way for the FTC to regulate on something very current in the area of AI. While this rule is less controversial than others, we should expect more proposed regulation on AI-related topics in the near term.

Read the full article.

“FTC Takes Steps to Protect Consumers from AI Deepfakes” was published by ARM Compliance Digest on March 4, 2024.