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Home/Regulations/FTC Act Section 5 (Unfair or Deceptive Practices) — Regulatory Reference
Regulatory Reference
Retail Federal (US) medium

FTC Act Section 5 (Unfair or Deceptive Practices) — Regulatory Reference

Unfair/deceptive AI-driven practices — safeguards, model risk management, and audit trail for AI customer interactions.

Key Provisions
  • 15 USC § 45 — unfair or deceptive acts or practices in or affecting commerce
  • 2023 FTC guidance on AI claims
  • 2024 FTC settlements addressing biased and deceptive AI
  • Section 5(n) — unfairness test (substantial injury, not reasonably avoidable, not outweighed by benefits)
How AutoPIL Enforces It
  • Pre-retrieval enforcement prevents AI from consuming data categories that would create deceptive personalization
  • Audit chain provides evidence for FTC inquiries about AI claims and behavior
  • Agent registry distinguishes AI agents whose outputs are customer-facing vs. internal
Audit LogPolicy EngineSensitivity Labels
AutoPIL Policy IDs
RET-FTC5-UD-001Deceptive AI Output Boundary
RET-FTC5-UF-001Unfair Personalization Audit
Official Sources
https://www.ftc.gov/legal-library/browse/statutes/federal-trade-commission-acthttps://www.ftc.gov/business-guidance/blog/2023/02/keep-your-ai-claims-check

This page is a working reference and not a substitute for qualified legal review. Verify against official sources before use in compliance artifacts.

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