FTC Warns Companies Against Deceptive Use of Customer Data for AI
• US companies may face federal scrutiny if they secretly use customer data to train AI models without proper disclosure • Personal data is extremely valuable for training AI systems, like those used by Netflix, Amazon, and Google • Simply updating a privacy policy to allow AI training with customer data is not transparent enough and could violate laws • Federal agencies like the FTC are warning companies not to deceively rewrite privacy policies to enable unfettered AI data usage • The FTC can crack down on false marketing claims and "unfair or deceptive practices" related to AI capabilities