Federal Trade Commission (FTC)

The Federal Trade Commission was established in 1914. At that time, Woodrow Wilson, the president, signed the Federal Trade Commission Act. In 1915, the FTC officially began its work, and it continues to this day. In 2015, the FTC celebrated its 100th anniversary. You can find out more about FTC’s history here.

According to the FTC, AI companies must continue to prioritize data protection and fair business practices, adhering to current FTC regulations in regulated industries. Since the established regulations remain in effect, AI does not exempt companies from these rules. 

Some key facts to remember regarding AI and data protection:

• Even though companies find it beneficial to use their user base for AI training data due to cost-effectiveness, they should be cautious when collecting new data.
• Companies cannot use deceptive tactics or dark patterns to gain consent from users. AI-driven price fixing is also illegal.

The Internet Rule, also known as the Mail, Internet, or Telephone Order Merchandise Rule, was established in 1975. It mandates that sellers who solicit buyers to purchase goods online, by mail, or over the phone must have a reasonable expectation that they can ship within the advertised period. If no specific timeframe is stated, they must ship within 30 days. Otherwise, the seller needs to get the buyer’s permission to delay the shipment or refund the payment for the items. 

The FTC describes a market in an antitrust investigation as something that includes” all goods or services that buyers consider as close substitutes.” For example:

• If a price increase leads consumers to switch to a different product to avoid the higher cost, those products are likely in the same market.
• If consumers don’t switch despite the price increase, those products may not be considered part of the market when assessing how a merger affects competition.

The FTC collects money from defendants and uses it to:

• Refund injured consumers
• Covering administrative costs

If a refund program isn’t viable or if there’s leftover money after refunds are processed, the FTC allocates these funds to the US Treasury or to co-plaintiffs (as ordered by the court and other relevant laws). 

FTC notes that its staff will never ask for money or instruct you to transfer any funds. The organization encourages reporting these scams here.