(1) Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.
Now, IANAL, but it seems to me that the example the FTC gave about racially biased 'AI' would fall well under the second clause.
> The proper inquiry is not whether a contractual relationship existed between the parties, but rather whether the defendant’s allegedly deceptive acts affected commerce.
I'm really not sure that "gave different demographics of users different responses to optimize product satisfaction" is considered in any way an "unfair or deceptive" practice "in or affecting commerce".
> I'm really not sure that "gave different demographics of users different responses to optimize product satisfaction" is considered in any way an "unfair or deceptive" practice "in or affecting commerce".
Replace 'product satisfaction' with ARPU and suddenly it could very well be. Charging users different amounts, even if it only appears that it might be racially biased, would be a great way to invite more scrutiny.
Ultimately, I figure the FTC probably has a few lawyers on staff, and they probably ran these messages past at least one of them. So they're probably a little more certain of the soundness of the messages than us armchair lawyers.
(1) Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful.
Now, IANAL, but it seems to me that the example the FTC gave about racially biased 'AI' would fall well under the second clause.