Jasnow Quoted on Potential FTC Regulation of Deepfakes

Bloomberg Law
AI, Metaverse & Blockchain Industry Group Co-Leader Dan Jasnow was quoted on a potential rule from the Federal Trade Commission (FTC) that would impose liability on developers of generative AI tools when those tools are used to commit fraud, including deepfakes and unlawful impersonations.

Dan said, “I don’t think there’s any doubt that generative AI tools are being used for this type of fraud,” while also noting that the FTC’s proposed rule raises a troubling question: “Could a developer put these tools on the market without facing paralyzing levels of litigation that would prevent them from moving forward?”

He suggested that a better approach might be to offer a safe harbor for companies that complied with certain guidelines — like watermarking content, promptly taking down harmful material, or conducting know-your-customer checks.

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