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Artificial Intelligence Unfair or Deceptive Trade Practices Enforcement Actions

Sheppard Mullin Richter & Hampton LLP

Lessons from the FTC: The Cleo AI Settlement

The FTC’s settlement with Cleo AI gives some indication as to what we might see from the agency in the coming months. The FTC alleged, among other things, that Cleo AI’s actions violated Section 5 of the FTC Act. In...more

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

Kelley Drye & Warren LLP

Multiple Bites at the Apple over AI Claims

When Apple announced the iPhone 16 last year, it advertised that it would be ​“the first iPhone built for Apple Intelligence.” Apple touted several AI features and advertised that Apple Intelligence is ​“Available Now.” In...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: Private Civil Consumer Financial Services Litigation to Partially Fill CFPB Void - Part...

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The podcast we are releasing today is part 1 of a re-purposed webinar we produced on March 25 titled “The Impact of the Election on the CFPB - Part 4.” As a result of the diminishing impact of the CFPB on enforcing the...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

Looking Back at 2024's Noteworthy State AG Litigation

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State attorneys general across the U.S. took bold steps in 2024 to address unlawful activities by corporations in several areas, including privacy and data security, financial transparency, children’s internet safety, and...more

Sheppard Mullin Richter & Hampton LLP

New York Attorney General Proposes Bill to Expand Consumer Protection Law 

On March 13, New York Attorney General Letitia James announced the introduction of the Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Business Practices Act). The proposed legislation...more

Orrick, Herrington & Sutcliffe LLP

New York attorney general proposes bill against unfair, deceptive and abusive practices

On March 13, New York Attorney General Letitia James announced proposed legislation to strengthen the state’s consumer protection framework by expanding enforcement powers beyond deceptive acts and practices to also include...more

Robinson+Cole Data Privacy + Security Insider

What is AI Washing and Why are Companies Getting Sued?

With the proliferation of artificial intelligence (AI) usage over the last two years, companies are developing AI tools at an astonishing rate. When pitching their AI tools, these companies claim that their products can do...more

Cozen O'Connor

Texas AG Investigates DeepSeek

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Texas AG Ken Paxton has announced an investigation into the artificial intelligence company DeepSeek’s privacy practices and its claims that its AI model rivals the most advanced AI models in the world, including OpenAI....more

Pierce Atwood LLP

State Regulators Eye AI Marketing Claims as Federal Priorities Shift

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With the increase in AI-related litigation and regulatory action, it is critical for companies to monitor the AI technology landscape and think proactively about how to minimize risk. To help companies navigate these...more

Hudson Cook, LLP

FTC Targets Accessibility Overlays

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On January 3, 2025, the Federal Trade Commission ("FTC") announced a proposed $1,000,000 settlement with accessiBe Inc. and accessiBe Ltd. accessiBe is a software provider that sells an AI-powered web accessibility tool...more

Venable LLP

The Biden/Chopra CFPB's 2025 Guidance Compendium: A Last Gasp or Lasting Legacy?

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On the eve of a change in administration, the Biden/Chopra CFPB released a "Compendium of Recent CFPB Guidance," a sweeping collection of interpretations of federal consumer financial laws under the current leadership...more

BakerHostetler

In the Matter of ‘accessiBe’ - Can This Case Provide a Window into the Direction of Andrew Ferguson’s FTC?

BakerHostetler on

On Jan. 3, the Federal Trade Commission (FTC) announced a settlement with software provider accessiBe. At first, accessiBe seems to be a simple, routine FTC case following the traditional formula: Advertising + False Promises...more

ArentFox Schiff

Continued FTC Crackdown on False Product Reviews

ArentFox Schiff on

Consumer protection wins again! The Federal Trade Commission (FTC) announced a final order settling its complaint against Rytr LLC, an artificial intelligence (AI) writing assistant tool that was capable of producing detailed...more

Wiley Rein LLP

CES 2025: FTC Commissioners Discuss Approach to AI in New Administration

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On Thursday, January 9 at CES 2025, two sitting FTC Commissioners – Rebecca Slaughter (D) and Melissa Holyoak (R) – sat down for a revealing discussion moderated by two former FTC Commissioners now in the private sector –...more

Wiley Rein LLP

Wiley Consumer Protection Download (January 7, 2025)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Troutman Pepper Locke

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

Troutman Pepper Locke on

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

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

Holland & Knight LLP

The Expected Impact of the Election and Republican Control of Congress on the FTC

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The election of Donald Trump as president, combined with forthcoming Republican control of Congress, likely means significant change in how the Federal Trade Commission (FTC or Commission) is structured and approaches...more

Troutman Pepper Locke

Troutman Pepper Weekly Consumer Financial Services Newsletter - November 2024 # 2

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

WilmerHale

The FTC Cracks Down on Unfair and Deceptive Practices Involving the Use of AI

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On September 25, 2024, the Federal Trade Commission (FTC) announced the launch of “Operation AI Comply,” an initiative created to tackle unfair and deceptive business practices involving the use of artificial intelligence...more

Dechert LLP

Dechert Cyber Bits - Issue 63

Dechert LLP on

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

WilmerHale on

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

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