The Federal Trade Commission issued a supplemental notice of proposed rulemaking on February 15, 2024, in which it recommended a trade regulation rule that would (1) impose liability on businesses who provide goods or services (including artificial intelligence technology) with knowledge or reason to know they will be used to engage in unlawful impersonation of

Artificial Intelligence-generated robocalls may trick some consumers into thinking they are being called by a human being, but the Federal Communications Commission clarified in a recent AI Declaratory Ruling that it will not be fooled. Moving forward, all AI-generated robocalls will be treated as artificial or prerecorded voice calls for purposes of the Telephone Consumer

On February 1, 2024, the Federal Trade Commission announced a complaint and proposed consent order against Blackbaud, Inc. concerning a 2020 data security incident that included a ransomware demand and payment. According to the FTC’s complaint, Blackbaud’s allegedly unfair and misleading conduct included not just deficient data security practices but also a delay in providing

Less than 10 days after announcing its complaint and proposed settlement against location data broker X-Mode, the Federal Trade Commission (FTC) followed its recent spate of enforcement in the location and sensitive data space with the announcement of another enforcement action and proposed settlement with InMarket Media, Inc. (InMarket). Continue Reading The FTC Continues its Focus on Location and Sensitive Data

On January 9, 2024, the Federal Trade Commission (FTC) announced its complaint and proposed settlement with location data broker X-Mode Social, Inc. and its successor Outlogic, LLC (collectively X‑Mode). Under the order, X-Mode will be prohibited from sharing or selling any “sensitive location data”—location data that identifies visits to sensitive locations such as medical facilities, religious organizations, and other locations that allow potentially sensitive inferences. The FTC’s action reflects the FTC’s continued focus on location data, particularly that reflects potentially sensitive information, and is similar to the case it is currently litigating against Kochava regarding its sales of precise geolocation data.Continue Reading FTC Cracks Down on Collection and Sharing of Sensitive Location Data With Proposed X-Mode Settlement

The Federal Trade Commission announced its first enforcement action alleging that discriminatory use of artificial intelligence was an unfair practice under Section 5 of the FTC Act on December 19, 2023. 

The enforcement action signals that the FTC is using and will continue to use its Section 5 unfairness authority to require reasonable safeguards on

One of the most litigated state telemarketing laws in the country has been significantly pared down. On May 2, 2023, the Florida legislature passed a bill to amend the Florida Telephone Solicitation Act (FTSA), Fla. Stat. § 501.059. The bill was presented to Florida Governor Ron DeSantis on May 16 and was signed into law on May 25. In this post, we cover the origins of the FTSA, its prior scope, and how the amendments modify the law. This amendment should significantly curtail lawsuits filed under the FTSA against companies that use technology to assist in placing calls to consumers.Continue Reading Florida Significantly Narrows the FTSA

As the hype about generative artificial intelligence (AI) has grown, the Federal Trade Commission (FTC) has made clear that it intends to be at the forefront of federal agencies working to ensure the responsible use of AI. In just the last few months, it has spoken repeatedly about AI, issuing multiple warnings about the risks of AI technology. In many respects, this is not new terrain for the FTC. Since at least 2016, the FTC has cautioned about the potential for machine learning and AI algorithms to lead to discrimination against protected classes. The FTC recently reiterated those concerns and cautioned businesses about the use of generative AI to spread manipulative, fraudulent, or unsubstantiated content.Continue Reading The FTC Can’t Stop Talking about AI

The Federal Trade Commission on March 2, 2023, announced a proposed complaint and proposed consent order with BetterHelp, Inc., an online counseling platform that allegedly disclosed consumer health data to third-party advertising platforms. The settlement requires payment of $7.8 million to be used for consumer refunds—the first time an FTC action has required the return