Comment by tantalor
2 days ago
How to speedrun massive penalties and disgorgement from FTC.
I guess we'll just put that in the "Cost of Goods Sold" bucket.
2 days ago
How to speedrun massive penalties and disgorgement from FTC.
I guess we'll just put that in the "Cost of Goods Sold" bucket.
I'm not aware of any FTC rule that would preempt this sort of product as long as it met the endorsement disclosure rules (16 CFR Part 255), same as paid influencers do today.
What are you imagining they run afoul of?
https://www.ftc.gov/business-guidance/resources/ftcs-endorse...
https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B...
friendzis's example showed a plausible way to generate revenue by inserting paid placements into the chat bot response without disclosures by pretending they are just honest, organic suggestions.
Right. That's not a novel idea, and this is a well-trod area of concern. That's why these FTC rules have been around for many years.
edit: to be clear, I am saying that in the absence of clear disclosures, that would run afoul of current FTC rules. And historically they have been quick to react to novel ways of misleading consumers.
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