AI Briefing: FTC cracks down on deceptive marketing tactics, fake reviews

Next month, the Federal Trade Commission’s new rules on fake reviews will take effect as part of a crackdown on misleading marketing and tainted testimonials from both humans and AI models. 

The rules come as part of the FTC’s broader actions against companies related to AI. Earlier this week, the agency made a separate move when it announced legal actions against five companies as part of a wider crackdown on companies’ deceptive marketing and claims about AI products and services.

“Using AI tools to trick, mislead, or defraud people is illegal,” FTC chair Lina Khan said in a statement. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books. By cracking down on unfair or deceptive practices in these markets, FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected.”

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