Rights & Ethics
Unfair Practices
Practices causing unavoidable consumer harm without offsetting benefits.
Definition
Under FTC Act Section 5, practices that cause or are likely to cause substantial injury to consumers which is not reasonably avoidable and not outweighed by countervailing benefits. Applies to AI systems.
Sources
- •FTC Act Section 5
- •15 U.S.C. § 45
Related Terms
Deceptive Practices
Practices likely to mislead consumers materially....
Unfair Trade Practices
Deceptive or unethical business acts in insurance, including those enabled by AI systems....
Manipulative Promotion Practices
AI techniques exploiting psychological vulnerabilities or deception....
Unfair Discrimination
Practices where AI systems lead to biased or inequitable treatment of consumers without legitimate grounds....
Unlawful Discrimination or Disparate Impact
AI outcomes causing unjustified differential treatment or adverse effects based on protected characteristics....