The United States Federal Trade Commission (FTC) is aiming to update a regulation that prohibits artificial intelligence (AI) from impersonating businesses or government agencies in order to safeguard consumers. The FTC’s revised regulation, which is subject to final language and public feedback, could criminalize the offering of products or services by generative artificial intelligence (GenAI) platforms that they know may be used to harm consumers through impersonation. FTC Chair Lina Khan stated in a press release that the updated rule would enable the agency to take legal action to compel scammers who acquire funds through impersonating government or business entities to return those funds. The final rule on government and business impersonation will come into effect 30 days after being published in the Federal Register, and the public will have 60 days to provide feedback on the supplemental notice of proposed rulemaking. Deepfakes, which involve the use of AI to manipulate videos by altering someone’s appearance, are a growing concern, and although no federal laws specifically address the sharing or creation of deepfake images, some lawmakers are taking steps to address the issue. Individuals who fall victim to deepfakes, including celebrities, have legal options available to them, such as copyright laws, rights related to their likeness, and various torts like invasion of privacy or intentional infliction of emotional distress. However, pursuing cases under these different laws can be time-consuming and challenging. In January, the Federal Communications Commission banned AI-generated robocalls by reinterpreting a rule that prohibits spam messages made by artificial or pre-recorded voices. This decision was made in response to a phone campaign in New Hampshire that utilized a deepfake of President Joe Biden to discourage people from voting. In the absence of congressional action, several states have passed laws making deepfakes illegal.
FTC Aims to Safeguard Consumer Safety by Addressing Deepfake Menaces in Updated Rules