How the NAD and the FTC are Treating AI Advertising Claims

Intellectual property counsel Olivia Clavio and associate Joe Carrafiello co-authored an article for Westlaw Today titled “How the NAD and the FTC Are Treating AI Advertising Claims.”

In the article, the co-authors examined the emerging regulatory and self-regulatory framework from the National Advertising Division (NAD) and Federal Trade Commission (FTC) governing artificial intelligence-related advertising claims. They noted that, due to the technical complexity of AI, and the tendency of both consumers and advertisers to assume more capability than the evidence support, claims related to AI advertising will continue to pervade conversations in the AI and marketing spaces.

“Companies that build product-specific evidentiary records before making AI claims, and that communicate the limitations of their technology alongside its benefits, will be better positioned than those relying on hype and anecdotal evidence alone,” the co-authors concluded.