With the use of artificial intelligence ("AI") becoming more widespread across almost all aspects of life, the FCC has taken several steps to regulate its use in the telemarketing space. As our readers are aware, earlier this year, the FCC made clear in a Declaratory Ruling that telemarketing calls employing AI technology are subject to the Telephone Consumer Protection Act's ("TCPA") restrictions on "artificial or prerecorded voice" transmissions. Yesterday, FCC Chairwoman Jessica Rosenworcel proposed additional regulations applicable to the use of AI in telemarketing calls. The latest proposal seeks to: (1) define what constitutes AI-generated calls; (2) implement rules requiring that callers obtain prior express consent before using AI in telemarketing calls; and (3) require that callers disclose to consumers when the calls they receive are AI-generated.
Why is The FCC Targeting The Use of AI in Telemarketing?
Since the beginning of the year, the FCC has taken a series of steps to protect consumers from the use of AI in telemarketing. Readers may recall that, earlier this year, New Hampshire residents received calls that utilized AI to generate President Joe Biden's voice, urging them not to vote in the State's primaries. Previously, the FCC has referenced instances in which scammers have utilized AI technology to "clone" the voices of their grandchildren when contacting the elderly to fraudulently ask that money be transferred on the scammer's behalf.
If adopted at the FCC's August Open Meeting, the latest rules would require the implementation of significant disclosure and protection measures for those that use AI in their telemarketing calls. In addition to the regulations itemized above, the proposal also contemplates: (1) the development of technologies that can alert and protect consumers from unwanted and illegal AI calls; and (2) protecting the positive uses of AI, especially those that help people with disabilities.
How Does This Proposal Impact Your Business?
Interested parties must now see if the FCC formally adopts this broad, AI-focused approach to regulating the telemarketing space. With regulators on a state and federal level already tightening the screws on what they deem to be acceptable disclosure and consent practices, this AI-centric news from the FCC only adds to the compliance obligations of telemarketing companies. On a positive note, the FCC has acknowledged that AI is here to stay, has useful applications, and, as such, the agency seeks to only regulate it and not prohibit its use by the telemarketing industry.
Against this backdrop, telemarketing companies that utilize AI technology should consult with legal counsel in anticipation of any future rulemaking on this issue. The attorneys at Klein Moynihan Turco have decades of experience in defending companies against telemarketing claims and are well-equipped to assist your business with TCPA-related compliance matters.
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