FTC authorises compulsory process for AI-related products and services to prevent potential harms
The Commission is interested in learning about consumer concerns regarding AI and preventing possible harm as the technology becomes more widely used.
The US Federal Trade Commission (FTC) has approved an omnibus resolution allowing the use of ‘compulsory process in nonpublic investigations involving products and services that use or claim to be produced using artificial intelligence (AI) or claim to detect its use.’
The resolution facilitates FTC staff’s power to issue civil investigative demands (CIDs)—equivalent to subpoenas in AI investigations—while keeping the Commission’s authority to determine when CIDs should be issued. The FTC usually issues CIDs to obtain records, information, and testimony that may aid its investigations. The new omnibus resolution will be in force for ten years.
Why does it matter?
The Commission is interested in learning about consumer concerns regarding AI and preventing possible harm as the technology becomes more widely used. The consumer and competition watchdog has also taken action against companies engaging in misleading practices related to AI and has introduced a rule to prohibit junk fees that can harm consumers and undercut legitimate firms.
The FTC’s recent activities are aligned with the unveiling last month of President Biden’s landmark executive order to guide the development of safe, secure, and trustworthy AI. They demonstrate the federal agency’s willingness to address AI’s issues and risks to protect consumers, mitigate potential harms, and ensure fair and competitive markets in the rapidly evolving landscape of AI technology.
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The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.
