A new proposed rule would prohibit impersonating individuals or knowingly providing tools for unlawful impersonation — dramatically expanding the FTC’s AI enforcement capabilities.

On February 15, 2024, the Federal Trade Commission (FTC) issued a Supplemental Notice of Proposed Rulemaking (SNPRM) seeking comment on a proposed rule that, if implemented, would prohibit the impersonation of any individual and prohibit companies from supplying technology that they know or reasonably should have known would facilitate impersonation. The proposed rules, which could go into effect as soon as this spring, would substantially increase the FTC’s enforcement powers over AI — and could potentially expose any provider of generative AI services to significant liability.