News & Analysis as of

Artificial Intelligence Settlement Enforcement Actions

Hudson Cook, LLP

FTC Takes Action against AI Company over Deceptive Accuracy Claims about AI Content Detection

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On April 24, 2025, the Federal Trade Commission (FTC) finalized a Decision and Order against an Artificial Intelligence (AI) Company (the "Company"), alleging that it made false and unsubstantiated claims about its AI Content...more

Lathrop GPM

Transparency and AI: FTC Launches Enforcement Actions Against Businesses Promoting Deceptive AI Product Claims

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Numerous businesses today deploy artificial intelligence (AI) innovatively across various industries, with many companies eager to hop on the AI hype train and ride the momentum of new and innovative business tools. While...more

Troutman Pepper Locke

Misleading Artificial Intelligence Claims by Marketer of Website Accessibility Widget Lead to $1 Million FTC Settlement

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On January 3, the Federal Trade Commission (FTC) issued a press release announcing that accessiBe Inc. and accessiBe Ltd. (collectively, accessiBe) agreed to pay $1 million to settle allegations of deceptive advertising...more

Troutman Pepper Locke

Takeaways From Texas AG’s Novel AI Health Settlement

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On Sept. 18, Texas Attorney General Ken Paxton announced a settlement with healthcare technology company Pieces Technology pursuant to the Texas Deceptive Trade Practices-Consumer Protection Act. Originally published in...more

Dechert LLP

Dechert Cyber Bits - Issue 67

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Illinois Courts Split over Whether Biometric Privacy Law Amendment Applies Retroactively - Two federal judges in the Northern District of Illinois have taken conflicting views on the issue of whether the Illinois...more

Venable LLP

The Dueling Views of FTC Commissioners Ferguson and Holyoak on the Scope of Agency Authority

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Last month, the Federal Trade Commission (FTC) announced an enforcement action against Evolv Technologies, alleging that the company made deceptive claims about the capabilities of its AI-powered security screening system,...more

Goodwin

Texas AG Reaches First-of-its-Kind Settlement With Healthcare AI Company Over Hallucination Rate Claims

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In a recent settlement, the Texas attorney general resolved allegations that Pieces Technologies, Inc. (Pieces), a healthcare generative AI company, misrepresented the hallucination rate of its generative AI product to...more

Clark Hill PLC

Right To Know - October 2024, Vol. 22

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Cyber, Privacy, and Technology Report - Welcome to your monthly rundown of all things cyber, privacy, and technology, where we highlight all the happenings you may have missed....more

Quarles & Brady LLP

Texas Attorney General Obtains Settlement of Alleged False and Misleading Statements About Healthcare Artificial Intelligence...

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On September 18, 2024, the Attorney General (AG) of Texas announced a settlement with an artificial intelligence-focused healthcare technology company to resolve allegations of false and misleading statements about the...more

Dechert LLP

Dechert Cyber Bits - Issue 63

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FTC Staff Report on Social Media Platforms’ Privacy and Security Practices - On September 19, 2024, the Federal Trade Commission (“FTC” or the “Commission”) announced the release of its staff report, “A Look Behind the...more

WilmerHale

Texas Attorney General’s Office Reaches Settlement with AI Company Over Deceptive Claims

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On September 18, the Texas Attorney General (AG) announced a settlement agreement with Pieces Technologies, Inc. (“Pieces”), a Dallas-based healthcare artificial intelligence (AI) research and development firm, resolving...more

Alston & Bird

The FTC Takes Aim at Deceptive AI Claims

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Our Consumer Protection/FTC Team investigates a slew of Federal Trade Commission enforcement actions against companies using allegedly deceptive artificial intelligence (AI) claims....more

McDermott Will & Emery

Texas AG’s Landmark AI Settlement: A Wake-Up Call for Health Tech & AI Companies

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The Texas Attorney General (AG) recently announced a “first-of-its-kind” settlement with a healthcare generative artificial intelligence (AI) company, Pieces Technologies, Inc., resolving allegations that the company made a...more

Alston & Bird

The Digital Download – Alston & Bird’s Privacy & Data Security Newsletter – August 2024

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Selected U.S. Privacy and Cyber Updates - New York AG Seeks Comments on Rulemaking for Minors’ Online Protection Laws - On August 1, 2024, New York Attorney General Letitia James issued two advanced notices of proposed...more

Mayer Brown

Securities and Exchange Commission Brings First Enforcement Actions Over “AI-Washing”

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On March 18, 2024 the US Securities and Exchange Commission (“SEC” or the “Commission”) announced that it had settled charges in separate actions against two investment advisers, Delphia (USA) Inc. (“Delphia”) and Global...more

White & Case LLP

New Settlements Demonstrate the SEC’s Ongoing Efforts to Hold Companies Accountable for AI-Washing

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In the past few months, we have published several alerts concerning the increase in regulatory attention to "AI washing," or making unfounded claims regarding artificial intelligence ("AI") capabilities.1 Senior officials at...more

Sheppard Mullin Richter & Hampton LLP

SEC Cracks Down on Over-Hyped AI Claims – Director Says This is Just the Beginning

The SEC has charged and settled claims with two Investment advisers with making false and misleading statements about their use of artificial intelligence (AI). The SEC found that Delphia (USA) Inc. and Global Predictions...more

Dechert LLP

Dechert Cyber Bits - Key Developments in Privacy & Cybersecurity - Issue 47

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FTC Settles with Rite Aid on its Use of AI and Processing of Biometric Information - The Federal Trade Commission (“FTC”), on December 19, 2023, announced that it had reached a settlement with Rite Aid Corporation (“Rite...more

ArentFox Schiff

Privacy Update: FCC Seeks Public Comment on the Current and Future Regulation of the "Internet of Things"

ArentFox Schiff on

FCC Seeks Public Comment on the Current and Future Regulation of the “Internet of Things” - The FCC is requesting public comment in a proceeding that will help determine the scope and nature of regulation of the “Internet of...more

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