Federal Trade Commission’s Post

Yesterday, the FTC acknowledged that it issued investigative orders to eight major companies who may be using AI and advanced algorithms for "surveillance pricing," questioning the impact this has on privacy and market competition. 🔹 Surveillance pricing under scrutiny: These companies, including Mastercard and JPMorgan Chase, must disclose product details and data usage, reflecting concerns over targeted pricing strategies that may exploit consumer information. 🔹 The inquiry, powered by the FTC's 6(b) authority, aims to unveil the opaque operations of digital intermediaries and their role in potentially manipulating prices based on consumer surveillance. 🔹 FTC Chair Lina M. Khan emphasizes the risk to privacy from data harvesting, hinting at possible unfair pricing tactics based on extensive personal data collection. 🔹 Key areas of FTC's focus: Types of surveillance products, data collection methods, customer demographics, and the direct impact on consumer pricing and privacy. As AI continues to play an increased role in the pricing strategies of major corporations, it's crucial for leaders and legal experts to stay vigilant. This type of inquiry often is an effort to lay a foundation for new regulations. Companies using AI should reconsider the transparency and ethics of their data use to stay ahead of potential regulatory changes. #AI #DataPrivacy #SurveillancePricing #FTC #RegulatoryScrutiny #TechEthics

🚨 FTC stats have confirmed that AI is increasingly being used by scammers to make the internet a less safe place. The threat is real and it's escalating quickly. 📈 𝗡𝗼𝘄 𝗶𝘀 𝘁𝗵𝗲 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗮𝗰𝘁. Protect your platform and users from these sophisticated threats with Pasabi's AI fake account detection technology today. ➡️ Discover the FTC's findings: https://hubs.ly/Q02pNH0H0 Federal Trade Commission #AI #AIScams #Scams #FTC #TrustAndSafety #OnlineSafety

Legislative efforts to regulate "high risk AI systems" are on the rise in State capitals across the US. And the FTC is also set to introduce rules that will limit and regulate private industries' ability to engage in "commercial surveillance." As AI continues to evolve, organizations must consider the intersection of existing and pending data privacy and AI laws, not just at the local, state, and federal levels but also from Federal agencies like the Federal Trade Commission. A patchwork of regulations will require a patchwork approach to #AI #GRC. Stay informed and stay ahead of the curve with Turaco Strategy LLC

𝗙𝗧𝗖 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗣𝗿𝗼𝗯𝗲 𝗶𝗻𝘁𝗼 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗨𝘀𝗶𝗻𝗴 𝗔𝗜 𝗳𝗼𝗿 '𝗦𝘂𝗿𝘃𝗲𝗶𝗹𝗹𝗮𝗻𝗰𝗲 𝗣𝗿𝗶𝗰𝗶𝗻𝗴' 𝗔𝗺𝗶𝗱 𝗣𝗿𝗶𝘃𝗮𝗰𝘆 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗖𝗼𝗻𝗰𝗲𝗿𝗻𝘀 1️⃣ . The Federal Trade Commission (FTC) has launched a probe into eight companies that advertise using AI and other technology to analyze consumer data and set targeted prices for products and services. 2️⃣ The companies under investigation include Mastercard, JPMorgan Chase, McKinsey & Co., Accenture, Pros Holdings Inc., Revionics, Bloomreach, and Task Software. 3️⃣ The probe aims to understand how these companies use detailed consumer data to deploy "surveillance pricing" and potentially raise consumer prices, posing concerns about privacy and exploitation of personal information. 4️⃣ FTC Chair Lina Khan expressed worries about companies exploiting consumer data to charge higher prices and emphasized transparency in using consumer data for pricing strategies. 5️⃣ The findings from the FTC's study could potentially inform future regulatory action by the agency and other regulators, such as the Consumer Financial Protection Bureau (CFPB), regarding the use of consumer data.

#BULawProf Woodrow H. notes, "This complaint is significant for a few reasons, one of which is the FTC took a data security-style safeguards approach to AI-powered surveillance systems. This also backs up the FTC's blog post a while back saying due diligence was necessary before deploying automated systems." Read more: http://spr.ly/6045RV5Fc #privacy #privacylaw #AILaw #AI #artificialintelligence #AIregulation

As generative AI takes the digital world by storm - there are urgent consumer protection concerns to be addressed. Implications for consumers include; 🔢Data protection & privacy 📱Redress & consumer care 🌐Exposure to online scams ℹ️ Bias, mis- & dis-information Let’s act now to make sure we get AI right for consumers. #GenerativeAIGuardian #WorldConsumerRightsDay

The current regs and how they are used with AI and biometrics is going to be interesting to watch as the deployment continues

What about data protection laws? PimEyes is a search engine that uses AI to search for any face that is uploaded, finding every image of that person online in seconds.

What does "model disgorgement" mean? Please read the following article written by Brandon LaLonde. "Model disgorgement — also known as algorithmic disgorgement or algorithmic destruction — refers to the deletion or destruction of models and algorithms. It is usually performed to remove "bad" data from a model, when bad data is any data that was illegally obtained, used without consent, found to be invalid or otherwise impacts the validity and/or legality of model. While the terms destruction and disgorgement may be commonly used interchangeably, it is important to distinguish them: Destruction: The entire model is destroyed or otherwise unusable, and a new model must be made entirely from scratch. Disgorgement: The offending training data and its effects are removed from the existing model, making it as if that data was never used in the first place. "Since the process of model disgorgement can be difficult, or even impossible, depending on how the model was built, an order for disgorgement can be a de facto order of model destruction. This is a costly burden considering the amount of resources needed to fully train a model. The surge of generative AI models that collect training data from all corners of the internet has further articulated the need for an approach that is less blunt than total destruction." Full article: https://lnkd.in/ezdUCqdU.

FTC 2023 Privacy and Security Update 📜 -- A crucial highlight from the report for all companies utilizing or intending to utilize AI technology: "Artificial Intelligence: The Commission has been leading efforts to ensure that AI and similar technologies are not deployed in harmful ways. In addition to obtaining orders against Rite Aid, Ring, and Amazon to ensure that companies are disincentivized from using data that was wrongfully collected or trained to develop AI, we have initiated a market study of social media and video streaming platforms on the use of AI, announced a public contest to develop new approaches to protect consumers from AI-enabled voice cloning harms, proposed rules to crack down on AI-fueled impersonator and fake review fraud, and issued numerous business guidance alerts." #ai #AIgovernance #infogov #informationgovernance https://lnkd.in/gm5jXBbJ