UK’s CMA sets AI consumer law guidance
Businesses urged to clearly disclose when customers interact with AI systems.
The UK Competition and Markets Authority has issued guidance warning firms that AI agents must follow the same consumer protection laws as human staff. Businesses remain legally responsible for AI actions, even when third parties supply tools.
Companies are advised to be transparent when customers interact with AI systems, particularly where people might assume a human response. Clear labelling and honest explanations of capabilities are considered essential for informed consumer decisions.
Proper training and testing of AI tools should ensure respect for refund rights, contract terms and accurate product information. Human oversight is recommended to prevent errors, misleading claims and so-called hallucinated outputs.
Rapid fixes are expected when problems emerge, especially for services affecting large audiences or vulnerable users. In the UK, breaches of consumer law can trigger enforcement action, heavy fines and mandatory compensation.
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