Misrepresentation, Artificial Intelligence, Enforcement Actions

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

Goodwin on 12/4/2024

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

Artificial Intelligence Stays in the SEC's Cross-Hairs

BCLP on 11/8/2024

As news stories about AI have surged, so have enforcement actions by the SEC alleging fraudulent statements about AI capabilities....more

Failure to Act: SEC Brings Individual Charges Against CFO and Audit Committee Chair in Corporate AI Fraud Case

Vinson & Elkins LLP on 9/27/2024

On September 16, 2024, the United States Securities and Exchange Commission (“SEC” or the “Commission”) brought charges against Kubient, Inc.’s (“Kubient”) former chairman and chief executive officer (“CEO”) for allegedly...more

FTC Announces Final Rule Banning Fake and False Consumer Reviews and Testimonials

Hinch Newman LLP on 8/14/2024

On August 14, 2024, the Federal Trade Commission announced a Final Rule combatting bogus consumer reviews and testimonials by prohibiting their sale or purchase. The Rule allows FTC lawyers to strengthen enforcement, seek...more

SEC Enforcement of 'AI Washing' May Just Be Getting Started

Fenwick & West LLP on 6/24/2024

In February, U.S. Securities and Exchange Commission Chair Gary Gensler gave stern warnings regarding the practice of “AI Washing,” that is, companies exaggerating or otherwise misrepresenting their use of AI and machine...more

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

White & Case LLP on 3/22/2024

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