FTC Issues Stern Warning: Biased AI May Break the Law

The Federal Trade Commission has signaled that it's taking a hard look at bias in AI, warning businesses that selling or using such systems could constitute a violation of federal law. From a report: "The FTC Act prohibits unfair or deceptive practices," the post reads. "That would include the sale or use of -- for example -- racially biased algorithms." The post also notes that biased AI can violate the Fair Credit Reporting Act and the Equal Credit Opportunity Act. "The FCRA comes into play in certain circumstances where an algorithm is used to deny people employment, housing, credit, insurance, or other benefits," it says. "The ECOA makes it illegal for a company to use a biased algorithm that results in credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance." The post mirrors comments made by acting FTC chair Rebecca Slaughter, who recently told Protocol of her intention to ensure that FTC enforcement efforts "continue and sharpen in our long, arduous and very large national task of being anti-racist."

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