FTC Attempts to Keep Up with Tech: Proposed ban on AI to Impersonate Individuals

The Federal Trade Commission (FTC) enforces federal consumer protection laws that prevent fraud among other unfair business practices. On February 15, 2024 the Chair of the FTC Lina M. Khan released a joint statement with Commissioner Rebecca Kelly Slaughter and Commissioner Alvaro M. Bedoya stating the FTC finalized its rule prohibiting both government and business impersonation scheme, and is seeking public comment on a supplemental notice of proposed rulemaking that would extend the ban to include the impersonation of individuals as well. Specifically, the finalized rule and the proposed addition would prohibit the use of artificial intelligence or AI tools for impersonation. For consumers, this rule and the proposed addition provide much needed protection against fraudsters using AI-generated deepfakes. Given the increase in consumer fraud, it is imperative that the FTC expand consumer protection regulation in tandem with evolving technology.