AI/ML, Privacy, Government Regulations

Quiet privacy policy modifications allowing data mining for AI to face FTC charges

Artificial intelligence companies and other organizations that do not properly inform consumers regarding privacy policy changes that would permit the utilization of their data for strengthening AI tools are poised to face charges from the Federal Trade Commission, according to The Record, a news site by cybersecurity firm Recorded Future. Immediate action will be taken against organizations that engage in third-party data sharing or leverage the data for AI training before retroactively revising their policies to reflect such activity, noted the FTC. "The FTC will continue to bring actions against companies that engage in unfair or deceptive practices including those that try to switch up the 'rules of the game' on consumers by surreptitiously re-writing their privacy policies or terms of service to allow themselves free rein to use consumer data for product development," said the agency's Division of Privacy and Identity Protection in a blog post, which noted similar actions against genetic testing firm 1Health and Hooked on Phonics in the past.

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