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ARTICLE · 17 MAY 2023

FTC Warns About "AI And The Engineering Of Consumer Trust"

Frankfurt Kurnit Klein & Selz PC
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The Federal Trade Commission has been giving increased attention to marketers' use of artificial intelligence. In a series of blog posts, the FTC has been highlighting different concerns...

United StatesConsumer Protection
Jeffrey Greenbaum
Jeffrey Greenbaum
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The Federal Trade Commission has been giving increased attention to marketers' use of artificial intelligence. In a series of blog posts, the FTC has been highlighting different concerns about the ways in which marketers can misuse AI. About a week ago, the FTC released a new post which raised some important issues that marketers should take into account. The FTC explained, "If we haven't made it obvious yet, FTC staff is focusing intensely on how companies may choose to use AI technology, including new generative AI tools, in ways that can have actual and substantial impact on consumers."

Noting that marketers are starting to use AI to influence consumers' beliefs, emotions, and behavior -- "tapping into unearned human trust" -- the FTC warned marketers not to steer people unfairly or deceptively into making harmful decisions. The FTC wrote, "Companies thinking about novel uses of generative AI, such as customizing ads to specific people or groups, should know

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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