In a Congressional hearing on Tuesday, the Federal Trade Commission (FTC) presented its warning to House representatives that modern AI technology, like ChatGPT, could be used to “turbocharge” fraud and scams. FTC Chair Lina Khan and fellow commissioners noted the potential risks that came with the implementation of such advanced technology, alongside the advantages it could provide. Khan put out the warning that the use of AI to maliciously deceive people would get companies in trouble with the FTC. To protect against the threats posed by AI technology, the commissioners shared that the FTC was emphasizing technological expertise across both their consumer protection and competition departments.
The Commission also shed light on the strategies it was employing to tackle other technological challenges. Among them, the FTC highlighted its efforts to fight back against the increasing amount of spam phone calls, as well as its work to prevent deceptive claims from crypto companies, protect personal data from websites and apps, and combat stealthy subscription junk fees. They additionally created the Office of Technology in February with the goal of getting the agency up to speed with modern technological advancements. It aims to understand issues related to security and privacy, digital markets, augmented and virtual reality, the gig-work economy, ad tracking technologies, and automated decision making.
The FTC is one of the main authorities tasked with protecting consumers in the United States. Founded in 1914, it is a bi-partisan body of five commissioners whose primary role is to advocate for consumers and promote competition. The FTC also works to stop unfair and deceptive trade practices, while enforcing other federal laws related to consumer protection. In addition, it seeks to inform and educate the public about various consumer topics. The agency works closely with other government entities, state agencies, and local law enforcement, aiming to build a safe and well-regulated economic environment.
The primary speaker in the Tuesday hearing was FTC Chair Lina Khan, who is the youngest person ever to serve in the position. She is a graduate of Yale Law School, where she received her law degree, and is known for her work researching competition law and reforming the antitrust landscape. She is also well-versed in technology issues, often bringing a modern perspective to the latest issues the FTC is grappling with. Prior to assuming the role of FTC chair, Khan worked for a number of policy experts, think tanks, and law firms. She is an active member of the American Bar Association and is involved in their Antitrust Section, Technology and eCommerce Committee, and Law and Economics Committee.
