The FTC’s Future Under Trump: Are We Losing Consumer Protections in AI?

Let’s face it—most Americans only think about the Federal Trade Commission (FTC) when they’ve been scammed or had their identities stolen. But if you’ve been following the developments in AI regulations under the Biden administration, you know the FTC has been busy cracked down on companies misrepresenting their tech. Now, with Trump’s newly released AI Action Plan, we might be entering a whole new era—one that could loosen the reins on the very companies that could harm us.

A Brief History: The Biden Administration’s Bold Moves

When Lina Khan took the helm at the FTC, things started to change. Picture this: AI companies like Evolv and Intellivision were touting their tech as infallible. Evolv claimed their AI security checkpoints could keep us safe in stadiums and schools. But this trust shattered when it failed to detect a weapon that was tragically used in an assault. Similarly, facial recognition tools were advertised as free from bias, only for the FTC to debunk those claims.

Sure, the fines may not have crippled these companies, but they set a precedent. The FTC gave consumers some power back—money recovery, contract exits, and most importantly, the assurance that harmful technologies wouldn’t run unchecked.

The Shift: Enter Trump’s AI Action Plan

Now, what does Trump’s AI Action Plan mean for us? It contains a clear message: the current regulatory framework may be too burdensome for innovation. The plan includes a review of the FTC’s previous actions and threatens to withhold federal funding from states with strict regulations. Scary, right? It sounds like a recipe for accelerated AI deployment—but at what cost to consumer safety?

What’s more, this shift represents a larger trend of empowering companies to innovate without worrying about accountability. Leah Frazier, a former FTC advisor, suggests that the agency could shift focus away from holding AI companies responsible for their actions. This effectively means fewer checks on accuracy and fairness.

The Risk of Deregulation: Real-World Implications

Think about it this way: if a restaurant never gets inspected, how safe do you feel eating there? The same principle applies here. Without the FTC enforcing rules, companies like Rite Aid might continue using flawed AI systems that disproportionately flag people of color as shoplifters—without any consequence. The FTC had previously banned Rite Aid from using AI facial recognition for five years, after serious issues were uncovered.

Now, imagine this kind of oversight fading into the background. The focus on “trying first” rather than enforcing responsible usage could lead to more harm than we realize. Frazier warns that there may be virtually no enforcement actions about how companies deploy AI.

What’s Next for the FTC?

We’re stepping into uncertain waters. As Trump pushes for less scrutiny, the balance tips toward unchecked experimentation with AI. This could mean quicker deployment, but let’s not kid ourselves; the repercussions could be dire. As consumers, who are we supposed to turn to when these systems—like facial recognition and automated customer services—fail us?

Moreover, this shift erases bipartisan support for holding companies accountable for deceptive practices. Deception is one thing, but irresponsible technology deployment hits deeper. It affects lives every single day.

What Can We Do?

So, what’s the takeaway? As everyday consumers navigating a tech-driven world, it’s crucial for us to stay informed. We need to be aware of changes in policy that could affect our safety and privacy—especially as the FTC’s oversight diminishes.

• Stay informed about updates in consumer rights and protections.
• Engage with your representatives to express concerns over deregulation.
• Support organizations that advocate for ethical AI usage.

In an age where technology impacts all aspects of our lives, our voice matters now more than ever. So what’s your take? Do you think the push for faster AI innovation is worth the risk? Let’s talk about it!

For more insights like this, check out FTC’s Consumer Protection Page for the latest updates and tips.