Consumer Advocates Support Proposed Rule to Establish Legal Liability for AI Fraud
The Consumer Federation of America, National Consumers League, and five other organizations submitted comments in support of a Federal Trade Commission proposal that would establish legal liability for artificial intelligence (AI) developers who know (or have reason to know) that their AI is facilitating fraud.
The FTC’s proposed rule would enable the agency to crack down on scams that use deepfakes and voice cloning. It would also help to fill a glaring gap in its ability to hold impersonation frauds accountable, like romance and grandparent scams. The organizations also urged the Commission to clarify that the liability for AI developers in facilitating fraud should also apply to companies that provide scammers access to AI tools, even if the companies did not develop the AI themselves.
Our Subject Matter Experts
Related Articles
Mayor-Elect Mamdani Appoints Consumer Protection Champion Sam Levine as Commissioner of New York City Department of Consumer and Worker Protection
Trump’s CFPB Waves the White Flag on the Military Lending Act to Give MoneyLion a Sweetheart Deal. Why?