FTC Signals Tough Line in First AI Discrimination Case Under Section 5

The Federal Trade Commission announced its first enforcement action alleging that discriminatory use of artificial intelligence was an unfair practice under Section 5 of the FTC Act on December 19, 2023. 

The enforcement action signals that the FTC is using and will continue to use its Section 5 unfairness authority to require reasonable safeguards on the use of automated tools, including those relying on facial recognition and other biometric technology, to ensure their accuracy and absence of bias. What is more, the case provides the most concrete guidance from the FTC to date regarding the measures that the FTC would like to see companies take to help ensure that AI systems operate accurately and without bias.

Read the full Update here.