The FTC Cracks Down On Unfair And Deceptive Practices Involving The Use Of AI

On September 25, 2024, the Federal Trade Commission (FTC) announced the launch of "Operation AI Comply," an initiative created to tackle unfair and deceptive business practices involving the use of artificial intelligence (AI), particularly false or exaggerated claims about an AI product's offerings. As part of the initiative's debut, the FTC announced its crackdown on five companies, accusing them of using AI "to supercharge deceptive or unfair conduct that harms consumers."

While this specific initiative may be relatively new, the FTC's focus on AI issues is not. The agency has been quite active over the past few years in identifying what it believes to be appropriate standards for AI companies, through both its guidance and its enforcement actions. It has leveraged this authority particularly in matters where companies use AI tools in a potentially discriminatory manner. These cases provide insight into how the FTC is approaching AI-related enforcement and some of