FTC AI Guidelines and Enforcement Actions

The US Federal Trade Commission applies existing consumer protection laws to AI systems, prohibiting deceptive claims about AI capabilities, biased algorithms causing discriminatory harm, and unfair AI-driven practices. The FTC has issued guidance and begun enforcement actions against AI companies for misleading claims.

• Truthful and substantiated claims about AI capabilities
• Prohibition on deceptive 'AI' labels for non-AI products
• Algorithmic fairness: AI must not illegally discriminate
• Transparency about AI use in consumer-facing products
• Data security for AI training data and outputs
• Prohibition on manipulative AI-powered dark patterns
• Section 5 FTC Act compliance for unfair AI practices
• Health and safety claims about AI must be substantiated

1. 1Review all marketing and product claims about AI for accuracy
2. 2Conduct algorithmic audits to identify discriminatory outcomes
3. 3Document AI capabilities with supporting evidence
4. 4Implement opt-out mechanisms for AI-driven personalization
5. 5Monitor FTC enforcement actions for emerging compliance precedents