FTC raises concerns over potential AI harm on competition and consumer protection issues

FTC raises alarms on generative AI’s potential harm to competition and consumer protection, citing copyright issues and deceptive practices.

 Person, Light, Traffic Light, Face, Head

The Federal Trade Commission (FTC) has submitted its comment to the US Copyright Office, raising concerns over the deployment and development of AI that could have negative effects on competition and consumer protection. These concerns are related to the potential harm that may arise for consumers, workers, and small businesses.

Namely, the FTC comment touches upon copyright-related issues, and despite the possible copyright law infringements, they could also deceive consumers and thus have a domino effect resulting in unfair methods of completion. In other words, not only may AI violate copyright laws by using other creators’ work for its profit, but it could also mislead consumers into believing that it was created by a human.

The FTC comment acknowledges the rapid evolution of AI, particularly generative AI, emphasizes that current laws apply without exceptions, and reaffirms its commitment to protecting consumers from deceptive and unfair practices while promoting open, fair, and competitive markets.