The FTC is embracing the change with the creation of a Technology Office (OT) that will help you effectively regulate the fast-moving technological world. Citing “systemic concerns” related to technology and its potential for fraud and abuse, the FTC’s new division will ensure that tech-savvy con artists don’t leave the agency behind.
Because the FTC is such a wide-reaching agency, it’s something of a generalist, and when a case requires specialized knowledge, it can bring in outside experts. You definitely want some good people in finance, but do you need a full-time employee just for, say, registration regulations? Probably not, but at some point an issue or industry may become prominent enough to warrant a serious and ongoing dedication of resources.
That’s the case being outlined today with issues arising in the world of technology, which, of course, FTC Chairman Lina Khan has personally railed against. Whether it’s antitrust or consumer protection, or simply telling influencers they should declare the post sponsored, the tech world is a vast and diverse arena for misbehavior and regulation.
The OT announcement fell to the agency’s CTO, Stephanie Nguyen. Providing as historical context the response to fraudulent ads spreading at unprecedented speed over radio when that was new, she says that while the challenges of technology are new, the “systemic concerns” they present are familiar:
The common thread is that some technologies can cause substantial harm to consumers, are misleading, or can negatively affect competitive conditions. From the rise of the surveillance economy to the widespread application of artificial intelligence by companies and business models that employ technology to disrupt markets, the shift in the pace and volume of technological change means that more issues The FTC needs team members with technology expertise.
The Office of Technology’s top priority is to work with agency-wide staff and leadership to strengthen and support the agency in compliance investigations and litigation cases. This could mean analyzing the claims made about an AI-powered product to assess whether the offer is oozing with snake oil or whether automated decision systems for teacher evaluations negatively affect employment decisions and make inferences that affect compensation and employment. permanence. We will also keep abreast of business model change, such as changes in digital advertising ecosystems, to help the FTC understand the implications for privacy, competition, and consumer protection. We are working with lawyers and data scientists to decipher the collection and sale of location data and how that data can harm consumers, and to understand the opaque algorithms that make decisions that affect millions of consumers.
Naming each of these potential infringers tells those companies to be careful. It may be fashionable to say that your HR productivity tool is powered by AI, but if you can’t prove it’s safe and effective, the FTC may be knocking on your (virtual) door soon.
To be clear, it’s not like the FTC has let technology run wild for the past decade. In fact, there are already several technology-focused departments, such as the Division of Privacy and Identity Protection. But it must have been clear enough to FTC leadership that they needed a larger, more centralized effort to stay on top of trends and be more proactive about guidelines and enforcement.
They’re hiring, so if you’re a tech worker thinking about getting out of the rat race and landing a comparatively quiet (in a way) federal job, have a look.
