US FTC bans fake online reviews to ensure marketplace integrity

The United States Federal Trade Commission (FTC) has introduced a rule banning the creation, purchase, and dissemination of fake online reviews, ensuring that testimonials are genuine and trustworthy. That includes reviews attributed to people who don’t exist, those generated by AI, or individuals with no real experience with the product or service.

The rule empowers the FTC to impose civil penalties on businesses and individuals knowingly engaging in such deceptive practices, holding violators accountable. By cracking down on fake reviews, the FTC protects consumers from being misled and ensures they can make informed purchasing decisions.

That initiative also promotes fair competition by penalising dishonest companies and supporting those operating with integrity, fostering a transparent and competitive marketplace. Additionally, the FTC’s rule goes beyond fake reviews by prohibiting businesses from using manipulative tactics such as unfounded legal threats, physical intimidation, or false accusations to influence their online reputation.

These measures prevent companies from using unethical strategies to control public perception, ensuring that business reputations are based on genuine consumer feedback, not coercion or deceit. The FTC aims to create a market environment that values honesty and fairness through this comprehensive approach.

AI company Perplexity faces lawsuit from Dow Jones and New York Post

Dow Jones and the New York Post have taken legal action against AI startup Perplexity AI, accusing the company of unlawfully copying their copyrighted content. The lawsuit is part of a wider dispute between publishers and tech companies over the use of news articles and other content without permission to train and operate AI systems.

Perplexity AI, which aims to disrupt the search engine market, assembles information from websites it deems authoritative and presents AI-generated summaries. Publishers claim that Perplexity bypasses their websites, depriving them of advertising and subscription revenue, and undermines the work of journalists.

The lawsuit, filed in the Southern District of New York, argues that Perplexity’s AI generates answers based on a vast database of news articles, often copying content verbatim. News Corp, owner of Dow Jones and the New York Post, is asking the court to block Perplexity’s use of its articles and to destroy any databases containing copyrighted material.

Perplexity has also faced allegations from other media organisations, including Forbes and Wired. While the company has introduced a revenue-sharing programme with some publishers, many news outlets continue to resist, seeking stronger legal protections for their content.

Blade Runner producer takes legal action over AI image use

Alcon Entertainment, the producer behind Blade Runner 2049, has filed a lawsuit against Tesla and Warner Bros, accusing them of misusing AI-generated images that resemble scenes from the movie to promote Tesla’s new autonomous cybercab. Filed in California, the lawsuit alleges violations of US copyright law and claims Tesla falsely implied a partnership with Alcon through the use of the imagery.

Alcon stated that it had rejected Warner Bros’ request to use official Blade Runner images for Tesla’s cybercab event on October 10. Despite this, Tesla allegedly proceeded with AI-created visuals that mirrored the film’s style. Alcon is concerned this could confuse its brand partners, especially ahead of its upcoming Blade Runner 2099 series for Amazon Prime.

Though no specific damages were mentioned, Alcon emphasized that it has invested hundreds of millions in the Blade Runner brand and argued that Tesla’s actions had caused substantial financial harm.

Google DeepMind’s AI may ease culture war tensions, say researchers

A new AI tool created by Google DeepMind, called the ‘Habermas Machine,’ could help reduce culture war divides by mediating between different viewpoints. The system takes individual opinions and generates group statements that reflect both majority and minority perspectives, aiming to foster greater agreement.

Developed by researchers, including Professor Chris Summerfield from the University of Oxford, the AI system has been tested in the United Kingdom with more than 5,000 participants. It was found that the statements created by AI were often rated higher in clarity and quality than those written by human mediators, increasing group consensus by eight percentage points on average.

The Habermas Machine was also used in a virtual citizens’ assembly on topics such as Brexit and universal childcare. It was able to produce group statements that acknowledged minority views without marginalising them, but the AI approach does have its critics.

Some researchers argue that AI-mediated discussions don’t always promote empathy or give smaller minorities enough influence in shaping the final statements. Despite these concerns, the potential for AI to assist in resolving social disagreements remains a promising development.

Meta faces legal challenge on Instagram’s impact on teenagers

Meta Platforms is facing a lawsuit in Massachusetts for allegedly designing Instagram features to exploit teenagers’ vulnerabilities, causing addiction and harming their mental health. A Suffolk County judge rejected Meta’s attempt to dismiss the case, asserting that claims under state consumer protection law remain valid.

The company argued for immunity under Section 230 of the Communications Decency Act, which shields internet firms from liability for user-generated content. However, the judge ruled that this protection does not extend to Meta’s own business conduct or misleading statements about Instagram’s safety measures.

Massachusetts Attorney General Andrea Joy Campbell emphasised that the ruling allows the state to push for accountability and meaningful changes to safeguard young users. Meta expressed disagreement, maintaining that its efforts demonstrate a commitment to supporting young people.

The lawsuit highlights internal data suggesting Instagram’s addictive design, driven by features like push notifications and endless scrolling. It also claims Meta executives, including CEO Mark Zuckerberg, dismissed concerns raised by research indicating the need for changes to improve teenage users’ well-being.

ByteDance fires intern for disrupting AI training

ByteDance, the parent company of TikTok, has dismissed an intern for what it described as “maliciously interfering” with the training of one of its AI models. The Chinese tech giant clarified that while the intern, who was part of the advertising technology team, had no experience with ByteDance’s AI Lab, some reports circulating on social media and other platforms have exaggerated the incident’s impact.

ByteDance stated that the interference did not disrupt its commercial operations or its large language AI models. It also denied claims that the damage exceeded $10 million or affected an AI training system powered by thousands of graphics processing units (GPUs). The company highlighted that the intern was fired in August, and it has since notified their university and relevant industry bodies.

As one of the leading tech firms in AI development, ByteDance operates popular platforms like TikTok and Douyin. The company continues to invest heavily in AI, with applications including its Doubao chatbot and a text-to-video tool named Jimeng.

Massachusetts parents sue school over AI use dispute

The parents of a Massachusetts high school senior are suing Hingham High School and its district after their son received a “D” grade and detention for using AI in a social studies project. Jennifer and Dale Harris, the plaintiffs, argue that their son was unfairly punished, as there was no rule in the school’s handbook prohibiting AI use at the time. They claim the grade has impacted his eligibility for the National Honor Society and his applications to top-tier universities like Stanford and MIT.

The lawsuit, filed in Plymouth County District Court, alleges the school’s actions could cause “irreparable harm” to the student’s academic future. Jennifer Harris stated that their son’s use of AI should not be considered cheating, arguing that AI-generated content belongs to the creator. The school, however, classified it as plagiarism. The family’s lawyer, Peter Farrell, contends that there’s widespread information supporting their view that using AI isn’t plagiarism.

The Harrises are seeking to have their son’s grade changed and his academic record cleared. They emphasised that while they can’t reverse past punishments like detention, the school can still adjust his grade and confirm that he did not cheat. Hingham Public Schools has not commented on the ongoing litigation.

London-based company faces scrutiny for AI models misused in propaganda campaigns

A London-based company, Synthesia, known for its lifelike AI video technology, is under scrutiny after its avatars were used in deepfake videos promoting authoritarian regimes. These AI-generated videos, featuring people like Mark Torres and Connor Yeates, falsely showed their likenesses endorsing the military leader of Burkina Faso, causing distress to the models involved. Despite the company’s claims of strengthened content moderation, many affected models were unaware of their image’s misuse until journalists informed them.

In 2022, actors like Torres and Yeates were hired to participate in Synthesia’s AI model shoots for corporate projects. They later discovered their avatars had been used in political propaganda, which they had not consented to. This caused emotional distress, as they feared personal and professional damage from the fake videos. Despite Synthesia’s efforts to ban accounts using its technology for such purposes, the harmful content spread online, including on platforms like Facebook.

UK-based Synthesia has expressed regret, stating it will continue to improve its processes. However, the long-term impact on the actors remains, with some questioning the lack of safeguards in the AI industry and warning of the dangers involved when likenesses are handed over to companies without adequate protections.

Hiya unveils new tool to detect AI deepfake voices

Hiya, a US-based company specialising in fraud and spam detection, has introduced a new Chrome browser extension to identify AI-generated deepfake voices. The tool offers free access to anyone concerned about the growing risk of voice manipulation.

The Deepfake Voice Detector analyses video and audio streams, sampling audio in just one second to determine whether a voice is genuine or artificially generated. Hiya’s technology relies on AI algorithms it integrated following the acquisition of Loccus.ai in July.

With deepfakes becoming increasingly difficult to spot, the company aims to help users stay ahead of potential misuse. Hiya president Kush Parikh emphasised the importance of launching the tool ahead of the US elections in November to address the rising threat.

A survey of 2,000 individuals conducted by Hiya revealed that one in four people encountered audio deepfakes between April and July this year. Personal voice calls emerged as the primary risk factor (61%), followed by exposure on platforms like Facebook (22%) and YouTube (17%).

Independent candidates face off against AI avatar

Two independent candidates participated in an online debate on Thursday, engaging with an AI-generated version of incumbent congressman Don Beyer. The digital avatar, dubbed ‘DonBot’, was created using Beyer’s website and public materials to simulate his responses in the event, streamed on YouTube and Rumble.

Beyer, a Democrat seeking re-election, opted not to join the debate in person. His AI representation featured a robotic voice reading answers without imitating his tone. Independent challengers Bentley Hensel and David Kennedy appeared on camera, while the Republican candidate Jerry Torres did not participate. Viewership remained low, peaking at fewer than 20 viewers, and parts of DonBot’s responses were inaudible.

Hensel explained that the AI was programmed to provide unbiased answers using available public information. The debate tackled policy areas such as healthcare, gun control, and aid to Israel. When asked why voters should re-elect Beyer, the AI stated, ‘I believe that I can make a real difference in the lives of the people of Virginia’s 8th district.’

Although the event saw minimal impact, observers suggest the use of AI in politics could become more prevalent. The reliance on such technology raises concerns about transparency, especially if no regulations are introduced to guide its use in future elections.