FTC warns AI bias safeguards in chatbots may violate federal consumer protection laws

US FTC says AI bias safeguards may run afoul of consumer law

WASHINGTON, July 1 (Reuters) - The Federal Trade Commission on Wednesday said AI companies whose chatbots produce responses that reflect "ideological objectives" may violate federal law, as part of a proposed policy on how the FTC will apply its authority to the sector. The FTC said AI companies that train their chatbots ⁠to avoid responses that discriminate against specific groups of people may run afoul of the Federal Trade Act's Section 5. The law prohibits unfair or deceptive business practices. Complying with a Colorado law aimed at preventing AI-driven discrimination in employment and other consequential decisions could violate the FTC Act, the agency ⁠said. U.S. President Donald Trump and other conservatives have accused AI chatbots of being politically biased against them. This is the latest example of conservatives aiming to use ⁠the power of the federal government to prevent that. The FTC will accept public comment on the proposed policy until ⁠July 31. FTC Chairman Andrew Ferguson has used the FTC's authority to police unfair and deceptive ⁠practices in other cases aimed at addressing conservative grievances, including a case against a transgender health nonprofit. Reporting by Courtney Rozen; Editing by Chizu Nomiyama Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Constitutional Law * Regulatory Oversight * Public Policy * Consumer Protection Courtney Rozen Thomson Reuters Courtney Rozen reports on the world's largest technology companies from Washington, D.C., focusing on the relationship between the tech industry and the U.S. government. She reported on DOGE and the federal workforce during the first year of U.S. President Donald Trump's second term. Prior to joining Reuters, she was a White House correspondent at Bloomberg Government. She graduated from American University with a master's degree in journalism. Jody Godoy Thomson Reuters Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at [email protected]

FTC says AI chatbot bias may violate federal law By Investing.com

Investing.com -- The Federal Trade Commission said today that AI companies whose chatbots produce responses reflecting ideological objectives may violate federal law. The statement came as part of a proposed policy outlining how the agency will apply its authority to the artificial intelligence sector. The agency stated that AI companies training their chatbots to avoid responses that discriminate against specific groups of people may violate Section 5 of the Federal Trade Act. This law prohibits unfair or deceptive business practices. The FTC also said that complying with a Colorado law designed to prevent AI-driven discrimination in employment and other consequential decisions could violate the FTC Act. President Donald Trump and other conservatives have accused AI chatbots of being politically biased against them. This represents another example of conservatives using federal government power to address these concerns. The FTC will accept public comment on the proposed policy until July 31. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.