The Federal Trade Commission warned businesses to stop using "surreptitious, retroactive amendment" on its policies just to collect American data for its AI training.
The warning comes as tech firms have become more aggressive in collecting their US customers' data to cater their products more, as other big techs like Netflix and Amazon collect digital information from its users.
The commission noted that companies developing AI products "possess a continuous appetite" for newer data from their users to the point of resorting to "unfair or deceptive" ways.
According to the FTC, companies are reportedly buying consumer data from third-party sellers or changing their data privacy secretly to allow such practices.
The FTC vowed that it "will continue to bring actions" against violators as AI development grows across the US market.
Also Read: NSA is Buying Americans' Data Activity Without Warrant
AI Regulation Receives Resistance from Industry
Despite the FTC's warning, legal actions towards AI companies remain low as the US government is yet to implement a standardized regulation on the industry.
It is also worth noting that lobbyists from leading AI firms have increased by 185% in 2023 as attention to technology grows.
As of writing, several agencies tasked to provide guidelines for AI use are still collecting inputs from companies to push forward with their proposals while the technology advances at a rapid rate.
Related Article: AI Lobbying Increased by 185% Amid Calls for Industry Regulations
FTC Offers Guidelines on AI Use Amid Rampant Developments
Over the past months, the FTC has been dipping its foot more into the AI industry as companies attempt to expand operations across different businesses and markets.
Just recently, the commission has published its latest guidelines on combating AI impersonation in response to more near-realistic generative AI image tools popping up.
The FTC noted that the technology is now being used more for scams, frauds, and other criminal activities as companies have broad limitations on the use of their products.
