The Federal Trade Commission rule targeting fake reviews and paid testimonials went into effect this week. The rule bans the creation, purchase or sale of reviews and opinion pieces attributed to fictional customers, or real ones who are financially compensated without plainly disclosing the transactional nature of the relationship. The rule, which subjects offenders to civil penalties, also takes aim at businesses who use threats or coercion to thwart the publication of negative reviews that are genuine. The new FTC rule was approved by unanimous vote in August. Continue reading FTC Rule Prohibiting Fake and Paid Reviews Goes into Effect

The Federal Trade Commission has implemented a consumer “click-to-cancel” rule that requires sellers to make it as simple to cancel subscriptions or memberships as it was to sign up. The FTC vote was 3 to 2, along party lines, in favor of implementing the rule, which makes it easier to divest of unwanted, recurring bills. “Too often, businesses make people jump through endless hoops just to cancel a subscription,” said FTC Chair Lina Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.” Continue reading FTC Adds Click-to-Cancel Provision to Negative Option Rule

California’s “click to cancel” bill has become law, making it easier for consumers to cancel subscriptions. Companies that offer online or in-app sign-ups will now have to make canceling or unsubscribing available online or in-app as well. Assembly Bill 2863 was signed into law this week by Governor Gavin Newsom, though companies have until the middle of next year to comply. Consumers have long complained about companies making it easy to sign up but difficult to cancel services. This law ensures consumers can easily exit from services “without being trapped by confusing processes or hidden fees.” Continue reading California Enacts Laws for Sub Canceling, Digital Downloads

In a unanimous vote, the Federal Trade Commission has banned the use of fake reviews, such as those generated by artificial intelligence, and also prohibits reviews or testimonials that are paid for, even if written by humans. The new rule, finalized Wednesday, also reins in other deceptive practices, like paying for fake social media followers, in an effort to stem misleading practices that are increasingly used by marketers. Generative AI has made manufactured reviews easily available, though the agency’s readiness to seek fines against knowing violators may make fabulists think twice before using them. Continue reading FTC Rule Takes Aim at Fake Reviews, Influence Manipulators

The U.S. Department of Justice has filed suit against TikTok and its parent company, ByteDance, charging they’ve violated the Children’s Online Privacy Protection Act (COPPA) by allowing children to create TikTok accounts without parental consent, and collecting their data. The suit also alleges TikTok retained the personal data of minors who joined prior to COPPA going into effect in 2000, even after parents demanded it be deleted, a right under COPPA. This latest move in the ongoing legal battle with ByteDance follows the Chinese company’s own lawsuit against the U.S. government. Continue reading U.S. Raises Stakes in TikTok Legal Battle, Suing Under COPPA

The Senate has introduced a bill that takes on tamping down deepfakes while also protecting creative content from use for AI model training. The Content Origin Protection and Integrity from Edited and Deepfaked Media Act, to be known as the COPIED Act, seeks to enact safeguards to protect journalists, actors, songwriters and other artists “against AI-driven theft,” while establishing new federal transparency guidelines for marking, authenticating and detecting AI-generated content. Emphasizing accountability, the bill stipulates that those found in violation will be subject to legal action. Continue reading COPIED Act Seeks to Protect from Deepfakes, Training Abuse

Federal regulators have taken the unprecedented step of banning the NGL messaging platform from providing service to users under 18. The action is part of a legal settlement between NGL Labs, the Federal Trade Commission and the Los Angeles District Attorney’s Office. NGL, whose niche is “anonymous” communication and features the tagline “Ask me anything,” has also agreed to pay $5 million in fines. An FTC investigation found that in addition to fraudulent business claims about divulging the identities of message senders for a fee, NGL also falsely claimed it used artificial intelligence to filter out cyberbullying and harmful messages. Continue reading Popular Messaging App Banned from Servicing Young Users

Apple has entered into a deal with OpenAI to deliver GTP-4o to its devices, which beginning this fall will feature Apple Intelligence, or “AI.” Announced during this week’s WWDC 2024, Apple Intelligence is “deeply integrated into iOS 18, iPadOS 18, and macOS Sequoia,” according to the company. The new AI features will be available to users of the iPhone 15 Pro, or any devices powered by M1 or newer chips “to understand and create language and images, take action across apps, and draw from personal context to simplify and accelerate everyday tasks.” Continue reading WWDC: Apple Intelligence Brings AI to iPhone, iPad and Mac

Masayoshi Son, CEO of Japan’s SoftBank, wants to transform the tech conglomerate’s Arm subsidiary into an AI powerhouse, and he is investing $64 billion (10 trillion yen) to implement the plan, which includes turning the UK-based unit into an AI chip supplier. Son announced that by spring 2025 Arm is expected to have its first prototype, followed by mass production by contract suppliers and commercial sales in the fall. Arm designs but does not manufacture circuitry, supplying what it calls “chip architecture” to customers including Nvidia and Qualcomm. Continue reading SoftBank’s Arm Plans to Supply AI Chips, Open Data Centers

The House of Representatives passed a bill that bars data brokers from selling the sensitive personal information of U.S. citizens to foreign adversaries, identified in the federal code as China, Cuba, Iran, North Korea, Russia and Venezuela. The Protecting Americans’ Data from Foreign Adversaries Act of 2024 passed unanimously on Wednesday, 414-0. The bill prohibits organizations that profit from selling personal consumer information from making it accessible to foreign adversary countries or entities controlled by them, authorizing the Federal Trade Commission to impose civil fines of more than $50,000 per violation. Continue reading Bill Barring Brokers from Selling Personal Data Passes House

The Federal Trade Commission has opened an investigation into Big Tech’s artificial intelligence arms race. Specifically, the agency has ordered five companies to provide information under what it calls a “6(b) inquiry,” targeting Amazon and Google’s strategic alliance with Anthropic, and Microsoft’s investment in OpenAI. The scrutiny aims “to build a better internal understanding of these relationships and their impact on the competitive landscape.” In other words, the government does not want another free for all, along the lines of social media’s growth, which saw big players acquire startups competing in the space. Continue reading FTC Is Investigating AI Investments by Major Tech Companies

Technology that empowers creators, a new generation of displays, and the promise and peril of artificial intelligence dominated CES 2024. After several years of incremental advances, market development built on maturing technology, and over-hyped trends, this year felt different with an energy that suggests the beginning of a new era. Among the highlights were next generation displays, including MicroLED and transparent technologies. If a consensus emerged, it is that AI may be everywhere but it isn’t everything. “People at the heart of creativity” was Sony’s CES slogan, yet its people-centered sentiment applied broadly across the show. Continue reading CES: AI Was Everywhere but Not the Only Thing in Las Vegas

In a conversation with CTA Senior Director of Regulatory Affairs Rachel Nemeth during CES 2024 in Las Vegas, a group of experts on consumer affairs and federal regulatory policy delved into the impact of existing and recent legislation on various sectors. Interestingly, they all agreed on one thing: the need for a national privacy law to replace the patchwork of differing state laws. T-Mobile Director of Federal Regulatory Affairs Melanie Tiano noted that currently 13 states have comprehensive privacy laws and that, two weeks into the new legislative session, she’s tracking more than 30 privacy-related bills. Continue reading CES: Experts Discuss the Path Toward a National Privacy Law

Consumer Technology Association Senior Vice President of Government Affairs Michael Petricone moderated a lively CES panel on the importance of fostering a dynamic and competitive marketplace, which, he says, has “profound implications for technology and how we live.” “CES is the most appropriate place to have this conversation,” he noted. Those in support of antitrust regulation didn’t have much of a chance to make its case, as the panel was composed of four ardent anti-regulation advocates, with a single panelist who stood up for the ongoing need for antitrust regulation in today’s market. Continue reading CES: Panelists Discuss Competitive Merits of Anti-Regulation

In a CES conversation with Consumer Technology Association Senior Director of Regulatory Affairs Rachel Nemeth, FTC Commissioner Rebecca Slaughter discussed the Commission’s work on AI-enabled impersonation fraud, privacy, and right of repair. Taking the stage just after FDA Commissioner Robert Califf, Slaughter said she wanted to co-sign his plea for “full visibility of the work we do.” “We have responsibility to all Americans to make sure they are represented in the substance of the work we do,” she said. “The same is true for industries that want to reach all Americans.” Continue reading CES: FTC Commissioner Rebecca Slaughter on AI Regulation