In a move aimed at cracking down on unwanted robocalls, the Federal Trade Commission (FTC) has slapped a $6 million fine on a company accused of misusing artificial intelligence (AI) in automatic calls.
The FTC accused the company, which has not been named, of using AI-powered technology to make millions of unwanted calls to consumers, often with the goal of selling them products or services. The company allegedly used the AI technology to generate fake phone numbers and make calls that appeared to come from legitimate businesses, making it difficult for consumers to identify the true source of the calls.
The FTC alleged that the company’s actions violated the Telephone Consumer Protection Act (TCPA), which prohibits making automated calls to consumers without their consent. The agency also accused the company of violating the FTC Act, which prohibits unfair or deceptive business practices.
“This company’s use of AI to make millions of unwanted calls is a clear violation of consumer rights,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “We will continue to take action against companies that disregard consumer privacy and engage in deceptive practices.”
The $6 million fine is one of the largest ever imposed by the FTC for violations of the TCPA. The company has agreed to pay the fine and to stop making unwanted calls.
The FTC’s action is part of a broader effort to combat the growing problem of unwanted robocalls. According to the FTC, Americans received over 48 billion robocalls in 2020 alone, with the average consumer receiving over 20 unwanted calls per month.
The use of AI in automatic calls has made it easier for companies to make unwanted calls, as they can generate fake phone numbers and make calls that appear to come from legitimate businesses. However, the FTC’s action sends a strong message that companies will be held accountable for violating consumer rights.
“This case is a wake-up call for companies that think they can use AI to evade consumer protection laws,” said Smith. “We will continue to monitor the use of AI in automatic calls and take action against companies that violate consumer rights.”
The FTC’s action is a reminder to consumers to be vigilant about protecting their phone numbers and to report any unwanted calls to the FTC.
