The Federal Trade Commission just released a new blog post that expands on the recent complaints against Amazon & Ring by providing some practical takeaways when it comes to AI tech, including natural language processing, and the collection, storage, & use of biometric data.
🔐 Be mindful of privacy when training and developing an AI tool. The FTC's enforcement authority under Section 5’s unfairness standard looks to both the benefit AND the cost to consumers for AI solutions.
“The message for businesses: The FTC will hold companies accountable for how they obtain, retain, and use the consumer data that powers their algorithms.”
🔐 Consumers control their data, not companies. The FTC highlights the issues with so-called “check the box 'consent'.” They also highlight the importance of allowing parental controls over children's data.
🔐 Special safeguards should be in place for human review and employee access to sensitive data. This includes human review and cleanup of AI data, which consumers should know about.
🔐 The FTC protects biometric data.
In this new blog post, the FTC notes “deserves the utmost protection because of its inherent sensitivity and the potential for bias, discrimination, and other harmful uses.”
🔐 The FTC is heavily focused on protection of kids' privacy. This includes using every tool it has available, including COPPA, to enforce protections.
🔐 The FTC has, and may in the future, require companies that improperly collect and use data to train AI algorithms and models to delete the data and models and products or services built using them.
I'm still puzzled as to why we aren't seeing the same forced deletion of datasets, algorithms, and models that Amazon and Ring built using the data at issue. It seems like maybe the FTC isn't wanting to poke that bear?
Or, maybe because doing so would be impractical without completely destroying Amazon/Ring's business?
Or, is there some other reason algorithmic destruction is off the table in these two recent proposed settlements?
I'm curious if you have thoughts as to why we didn't see the previously used algorithmic destruction requirements in either of the Amazon or Ring proposed settlements.
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A complaint has been filed against the @SECGov alleging the agency violated the Freedom of Information Act (FOIA) by failing to release unredacted transcripts of 2019 interviews with Mark Zuckerberg in his capacity as CEO of Facebook (now Meta).
There’s more… 🧵
If you recall, the deposition took place in 2019 following the Cambridge Analytica scandal involving the release of data to third-party app developers.
Facebook was hit with a $100 million fine by the SEC related to misleading investors about the severity of the issue.
The complaint alleges that since beginning requests for a full release of materials in November 2021, the SEC failed to ever comply with the FOIA request and follow-up requests.
The SEC cited personal privacy exceptions under FOIA.
That's the Act. To be fair, it does say that the Federal Trade Commission has enforcement power over whether or not the above disclaimer is included with any synthetic media.
🛑 But, how can this be it?
It leaves many unanswered questions, such as:
❓ What is the manner in which this disclaimer must appear? As a watermark on a photo or during a sound output? Within the metadata (if so, where)? At the end of a text output?
It's over! The Content ID lawsuit against YouTube brought by composer Maria Schneider is dismissed, with prejudice, the weekend before the start of the trial.
If you recall, the lawsuit was filed in 2020 and focused on the lack of broader access to copyright management tools, such as Content ID, for independent musicians and creators.
Maria Schneider and others filed the class action against YouTube and Google in an attempt to claim the current system supports piracy, while boosting profits for YouTube, and can't handle repeat infringers.
Q1 2023 filings for publicly traded #creatoreconomy companies leave me with one takeaway: ad revenues continue to decrease across numerous companies as advertiser spend is clearly slowing down.
Meta - 17% YoY drop in average price per ad, but they served more ads (26% more YoY)
Roku Inc. - 1% drop YoY in revenues
Both Roku and Spotify refer to the "macro" environment, with Roku explicitly pointing to industry data that shows "the total U.S. advertising market down 7.4% YoY."
It will be interesting to see how this expands into all areas of the creator economy.