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Financial Services Law Insights and Observations

FTC approves measures for compulsory process use for AI-related products and services

Agency Rule-Making & Guidance Federal Issues FTC Artificial Intelligence

Agency Rule-Making & Guidance

On November 21, the FTC approved an omnibus resolution in a 3-0 vote, allowing the use of compulsory processes in nonpublic inquiries involving products and services produced or claimed to be produced by artificial intelligence (AI). This resolution aims to streamline the FTC staff's issuance of civil investigative demands (CIDs), in AI-related investigations while maintaining the Commission's authority to decide when CIDs are necessary. This resolution remains valid for 10 years.