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Cox Media Group pays $930,000 for falsely claiming AI could listen to consumers via smart devices

The FTC fined Cox Media Group $880,000 for marketing a service that falsely claimed to use AI to capture consumer conversations through smartphones and smart speakers. Two partner companies, MindSift LLC and 1010 Digital Works, also settled for $25,000 each. The so-called Active Listening service turned out to be nothing more than email list reselling at marked-up prices.

2 Sources

Yesterday

HHS deploys ChatGPT and AI tools to hunt healthcare fraud across all 50 states

The Department of Health and Human Services announced a new AI initiative called AERO to analyze audit reports from federally funded health programs. The system will use ChatGPT and other AI tools to detect fraud and waste across Medicare, Medicaid, and other programs, replacing the traditional 'pay and chase' model with real-time screening.

4 Sources

Two men face federal charges for creating AI-generated porn of celebrities under new deepfakes law

Federal prosecutors charged Cornelius Shannon and Arturo Hernandez with creating sexually explicit AI content under the Take It Down Act. The deepfakes, featuring politicians and celebrities, drew over 3 million views. Both men face up to two years in prison in what marks one of the earliest prosecutions under the new law targeting deepfakes.

2 Sources

Trump postpones AI executive order, citing fears it could hinder America's lead in AI

President Trump abruptly delayed signing an AI executive order just hours before the scheduled ceremony, expressing concern that the measure could undermine American competitiveness in AI. The order would have established government oversight of advanced AI models and required companies to share models with federal agencies 14 to 90 days before release for security testing.

12 Sources

Gavin Newsom signs executive order to combat AI job displacement in California

California Governor Gavin Newsom issued the first-of-its-kind executive order mandating state agencies to explore labor policy overhauls addressing AI job displacement. The order examines subsidies for companies that retain workers, expanded workforce training for white-collar roles, and universal basic income alternatives as Meta cuts 8,000 jobs citing AI efficiency gains.

7 Sources

Trump administration seeks to supercharge US AI exports with billions in EXIM financing

The Trump administration has launched a major initiative to underwrite US AI exports with billions in federal financing through the Export-Import Bank. The ExportAI Initiative aims to expand American AI leadership globally by providing loan guarantees and direct loans for foreign purchases of US-built full-stack AI packages, positioning the US to compete with China in the global AI race.

2 Sources

Taiwan prosecutors investigate 3 people over Nvidia chip smuggling to China via forged documents

Taiwan authorities are investigating three individuals suspected of using forged documents to smuggle advanced Nvidia AI servers to China, marking the island's first formal semiconductor smuggling crackdown. The case connects to a broader Supermicro-linked diversion network and signals Taiwan's response to growing U.S. pressure on its export-control regime.

3 Sources

Manus founders seek $1 billion to reverse Meta acquisition after Chinese regulatory block

Manus co-founders are exploring a $1 billion funding round to buy back their AI startup from Meta after China ordered the unwinding of the $2 billion-plus acquisition. The move highlights escalating US-China tech tensions and Beijing's willingness to enforce investment rules on companies with Chinese origins, even those relocated to Singapore.

2 Sources

Delhi High Court reserves order on Raghav Chadha personality rights case against AI deepfakes

Delhi High Court reserved its decision on BJP MP Raghav Chadha's lawsuit against AI-generated deepfakes and manipulated content. Justice Subramonium Prasad questioned whether the case involves personality rights violation or political criticism, noting the thin line between defamation and criticism. The court may appoint an amicus curiae to address broader questions around free speech and protection of dignity in the AI era.

3 Sources

Ofcom Criticizes TikTok and YouTube for Failing to Protect Children from Harmful Content

UK media regulator Ofcom has singled out TikTok and YouTube for failing to implement meaningful child safety measures, while 73% of 11-17 year-olds were exposed to harmful content over four weeks. Meta, Snap, and Roblox have committed to new anti-grooming measures, but the regulator warns that current systems remain insufficient and enforcement action may follow under the Online Safety Act.

4 Sources

Meta AI Glasses Face Texas Investigation Over Privacy Concerns and Facial Recognition

Texas Attorney General Ken Paxton launched an investigation into Meta's AI-powered smart glasses, citing serious privacy risks. The probe examines whether the glasses unlawfully collect facial geometry, enable unauthorized recordings, and expose private user information through subcontractors. This follows Paxton's $1.4 billion settlement with Meta over facial recognition violations.

2 Sources

China bans Nvidia RTX 5090D V2 while Jensen Huang visits Beijing with Trump delegation

Beijing added Nvidia's RTX 5090D V2 to its banned imports list on May 15 while CEO Jensen Huang was visiting China alongside President Trump. The gaming chip, designed to comply with US export controls, had become a workaround for Chinese AI developers cut off from advanced processors. The move signals China's determination to support domestic chipmakers like Huawei as the US-China AI race intensifies.

5 Sources

Major AI companies and data brokers use deceptive designs to block opt-outs, EPIC report reveals

A privacy study by the Electronic Privacy Information Center exposes how 38 major companies—including Google, Meta, and OpenAI—use manipulative design tricks to prevent users from opting out of data sharing. The report documents fake forms, buried links, and preselected toggles that confuse consumers while keeping their personal information in circulation.

3 Sources

Meta offers rival AI chatbots limited free WhatsApp access after EU pressure mounts

Meta has submitted a new proposal to the European Commission offering rival AI chatbots including ChatGPT and Perplexity limited free access to WhatsApp in Europe, with fees kicking in after a usage threshold. The move comes after Brussels threatened formal action under the Digital Markets Act, but smaller competitors say the offer still discriminates against them.

2 Sources

Singapore pushes financial firms to use AI for job creation, not just cost-cutting

Singapore's Deputy Prime Minister Gan Kim Yong is urging banks and financial institutions to deploy AI to create better jobs and upskill workers for higher-value roles, rather than simply cutting costs. His remarks follow Standard Chartered's announcement to cut over 7,000 jobs as it accelerates AI adoption. A new DBS report ranks Singapore third among 15 AI financial hubs globally.

3 Sources

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