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4 Federal Agencies Issue Joint Statement Vowing to Protect Consumers From AI Misuse; Lina Khan Quoted

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4 Federal Agencies Issue Joint Statement Vowing to Protect Consumers From AI Misuse; Lina Khan Quoted

The Federal Trade Commission, Department of Justice Civil Rights Division, U.S. Equal Employment Opportunity Commission, and Consumer Financial Protection Bureau pledged to enforce laws to protect consumers against the misuse of automated systems and artificial intelligence.

FTC distributed the joint statement, which was signed by its chair, Lina Khan, on Tuesday. It was cosigned by Kristen Clarke, assistant attorney general of the Civil Rights Division, EEOC Chair Charlotte Burrows and CFPB Director Rohit Chopra.

AI and other software and algorithmic processes have been instrumental in modernizing civil and economic practices, but bad actors have also discovered their use in unlawful bias and discrimination, according to notice.

The four agencies stressed that they have separately taken action to prevent discrimination and abuse of automated systems. The FTC released a report detailing how automated tools can cause businesses to breach data privacy and provide inaccurate information.

CFPB issued a circular emphasizing that consumer financial laws will still apply in cases of unfair or deceptive actions, even if the technology used is deemed old or too complex. 

“Technological advances can deliver critical innovation—but claims of innovation must not be cover for lawbreaking,” Khan stated. “There is no AI exemption to the laws on the books, and the FTC will vigorously enforce the law to combat unfair or deceptive practices or unfair methods of competition.”