FTC Rulemaking Proposal Targets AI and Machine Learning Systems
The Federal Trade Commission launches a new rulemaking proceeding that raises significant questions about the regulation of artificial intelligence and machine learning applications. The agency seeks public input on how companies collect and use consumer data through automated decision-making tools.
The Federal Trade Commission initiates a rulemaking proceeding that targets artificial intelligence and machine learning systems alongside consumer privacy issues. This Advanced Notice of Proposed Rulemaking (ANPR) focuses on "Commercial Surveillance and Data Security" and passes with a 3-2 party-line vote. Companies that develop or deploy AI systems analyzing consumer data face potential new regulations.
The FTC asks the public to comment on whether the agency should implement new trade regulation rules regarding how companies collect, aggregate, protect, analyze, and monetize consumer data. Although the Commission states it is not proposing specific rules right now, it actively builds a public record to identify practices that violate Section 5 of the FTC Act. The comment period remains open until October 21, 2022, with a virtual public forum scheduled for September 8.
The ANPR includes over ninety questions that directly address AI and machine learning applications. It specifically examines automated decision-making tools, the use of biometric information, and the risks of algorithmic error and algorithmic discrimination. These inquiries signal that the FTC is seriously considering oversight of AI systems to prevent unfair or deceptive data practices.