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Is the FTC Poised to Crack Down on Generative AI?

May 15, 2023

Peter Schildkraut, co-leader of the firm's Technology, Media & Telecommunications industry team, was quoted in the Legaltech News article, "FTC Action Against Generative AI' Deception,' 'Unfair Practices' Likely Only Matter of Time." The story discusses the Federal Trade Commission's (FTC) approach to regulating this volatile sector and the likelihood of investigations and enforcement facing companies developing or using generative AI systems.

Schildkraut cautioned that while no enforcement action has happened thus far, the FTC will likely begin investigations soon using its authority to act against unfair or deceptive acts or practices. Going forward, he explained that the FTC could continue to act through enforcement or adopt new rules under its existing authority, or it could receive new powers if Congress were to adopt a statute to address these issues.

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