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FTC Sets Its Eye on Algorithms, Automated Tech, and AI-Enabled Applications | Davis Wright Tremaine LLP


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Two recent Federal Trade Commission (FTC) enforcement actions reflect increased scrutiny of companies using algorithms, automated processes, and/or AI-enabled applications. In January 2021, the agency announced it had settled with a company using facial recognition technology that allowed consumers to organize online photo albums, and had filed a complaint against a company using automated processes (bots) to game the concert ticket system in alleged violation of the BOTS Act.
These enforcement actions follow the agency s recent informal guidance outlining principles and best practices surrounding transparency, explainability, bias, and robust data models. The ramifications of these enforcement actions are significant for two reasons: ....

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