FTC Chair โฃLina โคKhan Warns AI Couldโค ‘Turbocharge’ Fraud and Scams
WASHINGTON – Federal Trade Commission Chairโ lina Khan warned Thursday that artificial โintelligence has the โpotentialโ to significantlyโข amplify fraud and scams, โขeven asโค the agency prepares to leverage existing legal authoritiesโ to police the rapidly evolving technology. Khan and fellow commissioners emphasized the FTC doesn’t need โฃnew lawsโ to address potential harms caused by AI, asserting current statutes โฃregarding unfair and deceptive โpractices, civilโค rights, โฃand โฃfair credit already apply.
the warning comes as policymakers debate specific AI regulations amid concerns about algorithmic discrimination andโข privacy. Though, โขKhan signaled the โคFTC will proactively โinvestigate companies utilizing AI under existing laws, stating the agency โwill not be “scared off by this idea that this is a new, revolutionary technology.” The FTC has already issued guidance to AI companies and, in March,โ received a request to investigate openai, the creator of โChatGPT, over potential consumer โdeception regarding the tool’s capabilities.
“Throughout โthe โขFTC’s history we have had to adapt our enforcement to changing technology,” said FTC โคCommissioner Rebecca Slaughter. “Our obligation is toโข do what we’ve alwaysโ done,โฃ which is to apply โฃthe tools we โขhave to these changing technologies.”
commissioner Alvaro Bedoya added thatโ companies cannot avoid liability by claiming their algorithms are opaque. “Our staff has been consistently sayingโข our unfair โand โฃdeceptive practices authority applies, our civil rights laws, fair credit, Equalโข Credit Prospect Act, those apply,” Bedoya said. “There is law, and โcompanies will โneedโ to abide โฃby โฃit.”
The FTCโ previously investigated AI companiesโค and, โlast month, responded to a โrequest to investigate OpenAI following claims that the company misled consumers about ChatGPT’s capabilities and limitations.