In the largest piece to come out of the FTC’s new focus on emerging technologies, the FTC Bureau of Consumer Protection issued new guidance on the use of artificial intelligence (“AI”) and algorithms. The guidance follows up on a 2018 hearing where the FTC explored AI, algorithms, and predicative analysis.
Unwanted robocalls reportedly totaled 26.3 billion calls in 2018, sparking more and more consumer complaints to the FCC and FTC and increased legislative and regulatory activity to combat the practice. Some automated calls are beneficial, such as school closing announcements, bank fraud warnings, and medical notifications, and some caller ID spoofing is justified, such as certain law enforcement or investigatory purposes and domestic violence shelter use. However, consumers have been inundated with spam calls – often with spoofed local area codes – that display fictitious caller ID information or circumvent caller ID technology in an effort to increase the likelihood consumers will answer or otherwise defraud consumers. To combat the rash of unwanted calls, Congress and federal regulators advanced several measures in 2019 and states have tightened their own telecommunications privacy laws in the past year. For example, within the last week, the Arkansas governor signed into law S.B. 514, which boosts criminal penalties for illegal call spoofing and creates an oversight process for telecommunications providers.