FTC’s Instacart Action Seen as Signal for Future AI Enforcement
The FTC’s $60 million settlement with Instacart suggests that automation doesn’t “absolve companies of transparency, consent, or fairness obligations,” attorneys for Mintz said in a post Tuesday.
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The FTC sued Instacart over deceptive practices related to its delivery service and other issues, and the two sides reached a $60 million settlement.
“The case reinforces that traditional consumer protection laws apply to AI-enabled markets,” they said, citing the FTC’s authority against unfair or deceptive practices. “While the White House’s AI Action Plan promotes innovation and minimal new regulation, it preserves FTC authority to enforce transparency, consent, and fairness in automated systems.”