Generative AI has taken the world by storm since OpenAI launched ChatGPT in November 2022. But the buzz and excitement of GAI has come with difficult legal questions that threaten the new technology. Several lawsuits—some of which we have discussed in detail—have been filed against companies whose GAI products have been trained on copyrighted materials. Up until now, we have only been able to speculate how courts will handle GAI as the industry has held its collective breath.
Perry J. Kumagai
Fake it Until You Pay For It: The FTC Proposes New Rule Banning Fake Reviews and Testimonials
By Perry J. Kumagai on
At the end of June 2023, the FTC proposed a new rule targeted at deceptive reviews in the marketplace. The proposed rule would prohibit advertisers and marketers from employing illicit review and endorsement practices such as using fake reviews, buying positive reviews, and suppressing negative reviews.
In explaining its motivation for the proposal, the Commission noted the widespread emergence of generative artificial intelligence (AI), which it fears could lead to a drastic increase in the prevalence of fake reviews. The FTC hopes to “level the playing field for honest companies” with this new rule.