The U.S. Federal Trade Commission (FTC) has proposed new charges against Meta Platforms, Inc., Facebook’s parent company, alleging violations of the Children’s Online Privacy Protection Rule (COPPA) and non-compliance with a 2020 privacy order. The announcement came on Wednesday, and if the charges are approved, Meta will face increased scrutiny and potential restrictions on its services.
FTC Commissioner Alvaro Bedoya stated, “The Commission is ordering Meta Platforms, Inc. (formerly Facebook) to show cause why the Commission should not modify its 2020 Order and enter a new proposed order based on Facebook’s record.” The FTC seeks to ensure that data collected from users under 18 is not commercialized and facial recognition technology requires user consent.
In addition to addressing Meta’s privacy issues, the FTC has also set its sights on artificial intelligence (AI), specifically ChatGPT-like AI systems. FTC Chair Lina Khan expressed her commitment to regulating AI in an op-ed published in The New York Times, asserting that “although these tools are novel, they are not exempt from existing rules.”
Khan compared the current AI landscape to the tech revolution of the mid-2000s, stressing the importance of preventing concentrated power and protecting privacy and security. The FTC is dedicated to upholding fair competition, data privacy, consumer protection from AI-enabled fraud, and countering discriminatory practices supported by AI systems.
According to Chair Khan, the FTC possesses the legal authority to address challenges emerging from the rapid development of the AI industry. This includes tackling collusion, monopolization, mergers, price discrimination, and unfair business practices. The regulator’s goal is to strike a balance between fostering innovation and safeguarding people’s and society’s interests.
As the FTC moves forward with proposed actions against Meta and outlines its commitment to regulating AI, US concerns over privacy violations, fair competition, and consumer protection in the digital age continue to grow. FTC Chair Lina Khan highlighted the need for vigilance in enforcing existing laws, stating, “the FTC will vigorously enforce the laws we are charged with administering, even in this new market.”
Khan also warned of potential risks related to AI dominance, such as the increasing power of firms dominating cloud services and computing, as well as the potential use of AI to facilitate collusion and raise prices. Generative AI, capable of writing in conversational English, could be misused for scams and phishing emails. Khan emphasized the agency’s focus on “enforcing the law’s prohibition on deceptive practices” by targeting not only scammers but also the upstream firms enabling their activities.
