The internet is awash with companies using the"magic-in-a-box" nature of AI to hype their often-dubious products, and it seems like the Federal Trade Commission is finally taking action. The US government consumer protection agency has announcedto combat"operations that use AI hype or sell AI technology that can be used in deceptive and unfair ways," kicking things off with five companies that it reckons have fallen foul of existing consumer protection laws.
The FTC has also filed against Ascend Ecom, a company it describes as an"online business opportunity scheme" that the FTC alleges"defrauded consumers of at least $25 million" and promised to produce a five-figure monthly income by the second year of subscription. FTC Chair Lina M. Khan said:"The FTC's enforcement actions make clear that there is no AI exemption from the laws on the books. By cracking down on unfair or deceptive practices in these markets, FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected."
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