Did you know FTC Warns AI Companies Against Malpractice And Fake Advertising To Avoid Heavy Penalties
The FTC is making sure all leading AI firms stay on the tip of their
toes in terms of honoring clauses mentioned in their terms of service.
Furthermore, they warned against misleading practices including fake ads
that don’t honor the user’s privacy.
The warning came through a blog post
that was published on Tuesday where it called out the model as a
service firm, better known as AI companies, from taking part in such
acts if they wished to avoid heavy penalties.
2023 was all about
the boom of generative AI and this year seems to be no exception to that
thought. Therefore, the FTC is making sure that those firms that train
their models and then go on selling access to other places like shops
and banks would now be forced to face major disciplinary action.
They similarly added how there was no kind of excuse or exemption for
such behavior and therefore they would be dealt with stringently as the
crime went against the law. Whether it was done implicitly or
explicitly, that is not a matter of concern, sources added as it was
wrong in all regards.
Meanwhile, the agency also spoke about how
it could bring about punishments against AI tech giants who broke
promises by making use of user data for model training and updating
purposes.
The FTC says it brought plenty of lawsuits in the past
against companies like BetterHelp and GoodRx because it disclosed user
data for the sake of gaining benefits from ad targeting. This was after
they had promised to keep all such data confidential but failed in that
regard.
When an organization does not openly or transparently tell clients about
what kind of data will be used and where it will be used, it’s a major
breach of their terms of service. This is the right of so many users of
the industry and therefore must be dealt with unjustly.
Firms
that get rid of any kind of material facts like how data is collected or
used might be instead of serious consequences in the form of
enforcement actions.
The agency also boldly delineated how all
AI giants should follow commitments made to clients from day one of
taking them on board and in the loop. This was regardless of how a
contract or promise was made. For example, any promise made via an ad,
online marketplace, or terms of service on the website must be carefully
carried out.
The agency mentioned how it was now warning AI
firms against rolling out key disclosures that were disguised behind
hyperlinks or fine print as that again stopped the user from
understanding what was going on.
Seeing such strict actions come
into play by the FTC really is a sign of relief for users who feel a
lot of regulation about the world of AI was required to ensure their
safety and privacy were not compromised.
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