The US Artificial Intelligence Safety Institute (AISI), housed within the National Institute of Standards and Technology (NIST), announced on 20 November 2024 the release of its first synthetic content guidance report, NIST AI 100 4 Reducing Risks Posed by Synthetic Content: An Overview of Technical Approaches to Digital Content Transparency. “Synthetic content” is defined in President Biden’s Executive Order on Safe, Secure, and Trustworthy AI as “information, such as images, videos, audio clips, and text, that has been significantly altered or generated by algorithms, including by AI.”
On 16 October 2024, the Federal Trade Commission (FTC) announced its final “Click-to-Cancel” Rule that applies to businesses that offer goods and services through automatically renewing payment plans, free or discounted trials that convert into full plans, or other “negative option features” that interpret a consumer’s silence as permission to keep charging them (collectively, “recurring subscriptions”). Under the finalized rule, the FTC may seek civil penalties of over USD 50,000 per violation, injunctive relief and consumer redress for companies that violate the requirements of having detailed transparent, consent and simple cancellation processes for recurring subscriptions and memberships.
On 7 November 2024, the FTC announced it will be sending refunds to 536,000 consumers deceived by Rejuvica’s and its owners’ unsupported claims that Sobrenix, a dietary supplement marketed and sold by Rejuvica, could reduce and eliminate alcohol cravings and consumption. In addition to the refunds, the FTC’s proposed order requests a permanent injunction and other relief due to violations under the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018
Companies that publish or use reviews and testimonials should note the Federal Trade Commission’s new proposed “Trade Regulation Rule on the Use of Consumer Reviews and Testimonials.” The FTC’s Notice of Proposed Rulemaking would make particular customer review practices illegal, authorize courts to impose civil penalties, and strengthen FTC enforcement actions while deterring misleading marketing strategies.