The rise of AI technology has prompted regulatory agencies to take action and protect consumers’ rights, as evidenced by the recent efforts of the Federal Trade Commission (FTC) and the California Privacy Protection Agency (CPPA).
On November 16, 2023, the FTC approved a resolution that authorizes its staff to issue civil investigative demands (CIDs) in cases involving AI or generative AI products and services. CIDs are legal requests for information or documents that the FTC uses to investigate potential consumer protection or antitrust law violations. The resolution aims to enhance the FTC’s ability to monitor and enforce compliance with existing laws and regulations that apply to AI, such as the Fair Credit Reporting Act, the Children’s Online Privacy Protection Act, and the FTC Act.
