The Federal Trade Commission filed lawsuits against five different companies alleging that those companies either made deceptive claims about AI products and services, or used AI in deceptive ways. The FTC announced that these lawsuits are part of a crackdown on companies allegedly engaging in this behavior called “Operation AI Comply.” AI washing has been a recent focus of federal enforcers. This week’s lawsuits represent another step taken by the FTC furthering its position that there is no AI exception to the law.
Federal Enforcers target “AI Washing”
The SEC has entered into settlements on charges with two investment advisers based on misleading statements in their SEC filings regarding their use of Artificial Intelligence technology. Late last year, the Chair of the SEC had warned against overstating use of AI technology so as to mislead investors, and the settlements this week show an intent to follow-through with this priority. The SEC’s efforts to protect investors dovetail with the FTC’s warnings and enforcement actions against misleading consumers by overstating AI capabilities. Companies in the AI space, particularly those with SEC filing obligations, should be aware of this enforcement activity when making claims regarding their technology.