By Tyler Yoo – Edited by Judy Lo

Recent Federal Trade Commission (“FTC”) publications and pronouncements signal the FTC’s willingness to regulate AI-generated products. According to the FTC, lack of transparency about the use of copyrighted materials in AI-generated works and products may amount to consumer deception. The FTC indicated its stance on at least three occasions in the past four months. First, in an August 16, 2023 Business Blog post titled “Can’t Lose What You Never Had: Claims About Digital Ownership and Creation in the Age of Generative AI,” the FTC warned that while intellectual property rights are “generally beyond the FTC’s consumer protection jurisdiction”, the FTC “take[s] note–and can take action–if companies aren’t upfront about what consumers are buying, who made it, how it was made...