Amid the escalating threats posed by deepfakes, the U.S. Federal Trade Commission (FTC) is moving to update a regulation aimed at preventing artificial intelligence (AI) from impersonating businesses or government entities, thereby safeguarding consumers.
The proposed revisions to the regulations, subject to finalization and feedback from the public received by the FTC, could potentially render it unlawful for generative artificial intelligence (GenAI) platforms to offer products or services knowingly exploitable for consumer harm through impersonation.
FTC Chairman Lena Khan underscored the urgency of combating impostor fraud amidst the proliferation of voice cloning and AI-driven scams. She emphasized the necessity of fortifying the FTC's arsenal against fraudulent activities where AI mimics individuals, particularly in voice cloning schemes.
The updated Government and Business Impersonation Rule empowers the FTC to initiate lawsuits directly in federal court to compel scammers to reimburse funds acquired through impersonating government or business entities. The finalized rule, once published in the Federal Register, will come into effect 30 days thereafter. Additionally, a 60-day public comment period on the proposed rulemaking will be open from the date of publication in the Federal Register.
Deepfakes, which leverage AI to manipulate videos by altering individuals' facial features or bodies, present a significant challenge. While no federal laws specifically address the creation or dissemination of deepfake content, efforts are underway among some lawmakers to tackle this issue. Victims of deepfake manipulation, including celebrities and private individuals, may seek legal recourse under existing frameworks such as copyright law, rights pertaining to likeness, and various torts related to privacy infringement or emotional distress. However, pursuing legal action under these disparate laws can prove cumbersome and time-consuming.
Furthermore, on January 31, the Federal Communications Commission (FCC) took action to prohibit artificial intelligence-generated autodialed calls by reinterpreting a rule originally aimed at curbing spam employing artificial or prerecorded voices. This decision followed an incident in New Hampshire where deepfakes featuring President Joe Biden were employed to deter voter participation. In the absence of congressional intervention, states across the nation have begun enacting legislation to criminalize deepfake activities.
