FTC Empowers Mandatory Oversight for AI Products and Services

The Federal Trade Commission (FTC) has approved the use of compulsory process in nonpublic investigations involving products and services that use or claim to use artificial intelligence (AI) or claim to detect its use. The resolution allows FTC staff to issue civil investigative demands (CIDs) in AI-related investigations, while retaining the Commission's authority to determine when CIDs are issued. The resolution will be in effect for 10 years. AI, including generative AI, has both beneficial uses and potential for fraud, deception, and privacy infringements, which may violate the FTC Act. The Commission voted 3-0 to approve the resolution.