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Schildkraut Talks FTC’s Deepfakes Proposal in Bloomberg Law

February 21, 2024

Peter Schildkraut, co-leader of the Technology, Media & Telecommunications industry team, was quoted in the Bloomberg Law article, “AI Providers Face Broad Liability Under FTC’s Deepfakes Proposal.” The article discusses the Federal Trade Commission’s (FTC) recent request for public comment on its proposed rule against fraudulent impersonation of individuals. The FTC proposal would hold the AI platforms enabling creation of deepfakes — false but highly realistic portrayals of people — liable when they are used to harm consumers through deceptive content. Liability would turn on whether the provider had “knowledge or reason to know that [its] goods or services will be used” for such impersonation.

Schildkraut told Bloomberg Law that if the FTC’s proposed rule goes forward, many AI models could find themselves implicated. Some companies might respond by imposing stricter controls on who uses the product, by raising prices to offset potential liabilities, or by shutting down entirely, he said. AI platforms might also consider invoking Section 230 of the Communications Decency Act, which has historically offered legal immunity to online platforms over certain content posted on their sites. However, Schildkraut added that it is unclear how the law would apply in this circumstance.

Read the full article.