ANALYSIS: FTC Enfolds AI Under Unfair Trade Practices Authority

The Federal Trade Commission has begun to find ways to apply its unfair trade practices authority to scrutinize and regulate generative AI tools for the first time.

Last October, in President Biden’s executive order on artificial intelligence, the president encouraged the FTC to use its existing authority, “as it deems appropriate,” to “ensure that consumers and workers are protected from harms that may be enabled by the use of AI.”

On the same day, the agency acknowledged that the unfair practices authority is an existing power that it can use to tackle illegal practices involving AI.

The unfair practices authority ...