Washington, DC – Earlier today, the White House unveiled a policy plan titled “Winning the Race: America’s AI Action Plan.” Consumer Reports is concerned about provisions in the plan that would block federal AI-related funding from going to states with so-called “burdensome” AI laws, another that would potentially shield harmful AI products from liability, and recommendations to expedite data center growth without fully considering the impacts on clean air and water.
“AI holds tremendous promise, but also serious risks for consumers. In the absence of Congressional action, states must be permitted to move forward with rules that protect consumers. Today’s action leaves states in a lurch; it’s unclear which state laws will be considered “burdensome” and which federal funds are on the line” said Grace Gedye, policy analyst for AI issues at Consumer Reports. “Earlier this month, Big Tech lobbyists tried to insert a 10-year moratorium on state AI laws into the budget bill but a bipartisan group of senators voted overwhelmingly to reject it. At a time of deep political division, there is rare and welcome consensus that states should be allowed to continue advancing AI rules that protect consumers.”
The US Senate voted 99-1 earlier this month to remove the 10-year moratorium on state regulation of artificial intelligence in budget reconciliation bill H.R. 1. Consumer Reports strongly opposed the moratorium and launched a petition urging the U.S. Senate to strike down the measure. In response, CR members sent nearly 80,000 emails calling on lawmakers to reject the 10-year moratorium.
The action plan also calls for a review of Federal Trade Commission investigations, orders, consent decrees, and injunctions to ensure they do not “burden AI innovation.” This language could potentially be interpreted to give free rein to AI developers to create harmful products without any regard for the consequences. While many AI products offer real benefits to consumers, many pose real threats as well — such as deepfake intimate image generators, therapy chatbots, and voice cloning services.
Last year, Consumer Reports filed a comment in support of the FTC’s settlement with Rytr, a company that sold a product that allowed customers to create unlimited AI-generated reviews for any product based on limited prompts. The FTC charged the company with unfair business practices for creating a product that was overwhelmingly likely to be used for fraud, especially as the company was aware that some customers were using Rytr to create dozens if not hundreds of reviews for the same product
“Companies–including AI companies–have a legal obligation to protect their products from being used for harm. When a company makes design choices that increase the risk their product will be used for harm, or when the risks are particularly serious, companies should bear legal responsibility,” said Justin Brookman, director of tech policy at Consumer Reports.
Amid ongoing gridlock in Congress, states have taken the lead on tech policy—especially in the areas of AI and consumer privacy. For example, last year, Colorado made history by enacting Senate Bill 205, becoming the first state in the country to establish baseline transparency for the use of AI in high-stakes decisions affecting consumers and workers. California passed a law, SB 942, that would help consumers discover which content is generated by AI. Tennessee passed the ELVIS Act, protecting performing artists from the unauthorized use of their voice and likeness. Dozens of states have passed protections related to non-consensual intimate deepfakes, and deepfakes in elections.
A further set of recommendations argue that data center growth must be expedited, at the potential expense of the local environment. “The Clean Air Act and the Clean Water Act have been in place since the early 1970’s, protecting Americans’ public health and welfare by balancing industrial growth with protecting clean air and water. We see no compelling reason to give data centers a free pass from these important protections,” said Sara Enright, senior director of safety and sustainability at Consumer Reports. “We instead welcome a responsible technology industry whose growth prioritizes the environment and rights of local communities.”
Contact: cyrus.rassool@consumer.org