Requires companies to obtain informed consent from consumers before using their data for training AI systems.
Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the risk subdomain are explicitly described.
Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.
All other risk subdomains had no coverage in this document.
Risk Coverage Summary
The document primarily addresses privacy and security risks (2.1), with strong focus on data protection and consent mechanisms. It has minimal coverage of discrimination risks (1.1, 1.3) through indirect implications of data use, and touches on governance (6.5) and transparency (7.4) issues. The document does not substantially address most other risk domains including toxicity, misinformation, malicious actors, human-computer interaction, socioeconomic impacts, or AI safety failures.
Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.
Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the sector are described.
All other sectors had no coverage in this document.
Sectors Summary
This legislation applies broadly across all economic sectors where covered entities (persons, partnerships, or corporations subject to FTC jurisdiction) collect consumer data and use it to train AI systems. The Act is sector-agnostic and governs data practices across industries including Information, Finance and Insurance, Health Care, Professional Services, and others that collect and use consumer data for AI training.
Hard Law
Legislative Status Summary
This is a binding federal statute with mandatory requirements, enforcement mechanisms through the FTC, and penalties for non-compliance. The document uses mandatory language throughout and establishes clear legal obligations for covered entities.
Proposer
Target
Enforcer
Monitor
Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems
AI Lifecycle Summary
The document primarily focuses on the 'Collect and Process Data' stage by regulating how consumer data can be collected and used for AI training. It also addresses the 'Build and Use Model' stage through requirements for obtaining consent before using data to train AI systems. There is minimal coverage of other lifecycle stages.
Terms relating to technical scope that are mentioned or implicitly referenced in the document
Technical Scope Summary
The document explicitly defines and covers 'artificial intelligence system' as a machine-based system capable of influencing the environment through predictions, recommendations, or decisions. It does not distinguish between different types of AI (frontier, general purpose, task-specific, generative, predictive) or mention compute thresholds or open-weight models. The focus is on AI systems broadly defined in terms of their training data requirements.
Document data from AGORA, CSET Emerging Technology Observatory.