Recently, the Federal Trade Commission (FTC) of the United States launched an enforcement action called 'AI Compliance Action,' suing five artificial intelligence companies accused of false advertising and fraudulent conduct. The FTC stated that these companies are charged with lying about the capabilities of their software or using AI technology to engage in illegal activities. Note: The image is AI-generated, and the image licensing provider Midjourney has reached a settlement with two of the sued companies, while the other three opted to go to court.

The Federal Trade Commission (FTC) of the United States announces a comprehensive ban on fraudulent artificial intelligence (AI) generated reviews and recommendations to combat dishonest practices in online reviews, including the purchase of positive reviews, hiring fake followers, and fabricating character testimonials. These fake reviews mislead consumers and undermine fair market competition. The new regulations highlight the dangers of AI-generated fake reviews and their impact on consumer decision-making. FTC Chair Lina Khan stated that fake reviews pollute the market and divert attention from honest competitors. This regulation aims to protect consumers by ensuring they rely on genuine user feedback rather than falsehoods.

According to reports from CNBC, the Federal Trade Commission (FTC) is conducting an informal investigation into Amazon's recent partnership with AI startup Adept. This news was confirmed on July 16. The FTC aims to gather more details about the agreement announced last month, including how Amazon hired key executives from Adept and obtained authorization to use their technology.In this collaboration, Amazon not only hired David Luan, the co-founder and CEO of Adept, but also brought in other sig

"Anthropic, the AI startup founded by Dario and Daniela Amodei, valued at $18 billion, confirmed a data breach in 2024 after an FTC investigation. The breach involved a portion of customer names and credit balances up to 2023."

The US FTC has prohibited Rite Aid from using AI facial recognition technology for a period of five years. The FTC alleged that Rite Aid failed to implement reasonable procedures in hundreds of stores and did not prevent harm to consumers. The ban highlights Rite Aid's reckless use of facial surveillance systems, which led to humiliation and other harms to customers. The FTC has made it clear that it will remain vigilant in protecting the public from unfair biometric surveillance and data security practices.

The FTC passed a resolution with a 3-0 vote, granting itself the authority to use compulsory processes in investigations involving claims of AI-driven products and services. The commission focuses on AI abuse issues, emphasizing accelerated investigations through new powers to prevent fraud, privacy violations, and other unfair practices. It launched the 'FTC Voice Cloning Challenge,' offering a $25,000 prize for creative solutions to prevent voice deepfakes.