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Enforcement Actions › Artificial Intelligence › Misrepresentation

Kelley Drye & Warren LLP

State AGs, and Mark Twain, Hold Companies Accountable for AI Use

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This week, two state attorneys general on very different ends of the political spectrum announced separate actions related to purported discrimination by AI services. Missouri sent inquiry letters to four Big Tech companies...more

Robinson+Cole Data Privacy + Security Insider

Workado Settles With FTC Over Alleged Misrepresentations of AI Accuracy

Robinson+Cole Data Privacy + Security Insider on

The Federal Trade Commission (FTC) issued a press release this week announcing that it settled with Workado over alleged misrepresentations of its ability to detect whether content was generated by artificial intelligence...more

Goodwin

Texas AG Reaches First-of-its-Kind Settlement With Healthcare AI Company Over Hallucination Rate Claims

Goodwin on

In a recent settlement, the Texas attorney general resolved allegations that Pieces Technologies, Inc. (Pieces), a healthcare generative AI company, misrepresented the hallucination rate of its generative AI product to...more

BCLP

Artificial Intelligence Stays in the SEC's Cross-Hairs

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As news stories about AI have surged, so have enforcement actions by the SEC alleging fraudulent statements about AI capabilities....more

Vinson & Elkins LLP

Failure to Act: SEC Brings Individual Charges Against CFO and Audit Committee Chair in Corporate AI Fraud Case

Vinson & Elkins LLP on

On September 16, 2024, the United States Securities and Exchange Commission (“SEC” or the “Commission”) brought charges against Kubient, Inc.’s (“Kubient”) former chairman and chief executive officer (“CEO”) for allegedly...more

Hinch Newman LLP

FTC Announces Final Rule Banning Fake and False Consumer Reviews and Testimonials

Hinch Newman LLP on

On August 14, 2024, the Federal Trade Commission announced a Final Rule combatting bogus consumer reviews and testimonials by prohibiting their sale or purchase. The Rule allows FTC lawyers to strengthen enforcement, seek...more

Fenwick & West LLP

SEC Enforcement of 'AI Washing' May Just Be Getting Started

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In February, U.S. Securities and Exchange Commission Chair Gary Gensler gave stern warnings regarding the practice of “AI Washing,” that is, companies exaggerating or otherwise misrepresenting their use of AI and machine...more

White & Case LLP

New Settlements Demonstrate the SEC’s Ongoing Efforts to Hold Companies Accountable for AI-Washing

White & Case LLP on

In the past few months, we have published several alerts concerning the increase in regulatory attention to "AI washing," or making unfounded claims regarding artificial intelligence ("AI") capabilities.1 Senior officials at...more

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