Consumer protection law: Which body of law is most directly | AIGP
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Consumer protection law: Which body of law is most directly implicated by this marketing conduct?

AIGP Understanding How Laws, Standards and Frameworks Apply to AI Medium

Misleading capability claims that consumers rely on are unfair or deceptive practices under consumer protection law.

The question

A company markets its AI chatbot as delivering 'certified medical diagnoses' when it does no such thing, and consumers rely on the claim. Which body of law is most directly implicated by this marketing conduct?

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  1. Nondiscrimination law, which prohibits biased treatment of protected classes in the covered decision contexts
    Plausible but wrong: nondiscrimination targets biased outcomes, not deceptive marketing claims to consumers.
  2. Intellectual property law, which governs the ownership of the chatbot's training corpus
    Plausible but wrong: IP law concerns rights in content, not misleading statements made to consumers.
  3. Product liability law, which addresses compensation for physical injuries from a defective consumer product
    Plausible but wrong: product liability centers on defect-caused physical harm, not deceptive advertising claims.
  4. Consumer protection law, which prohibits unfair and deceptive acts or practices toward consumers ✓
    Correct: false capability claims that mislead consumers are classic unfair or deceptive practices under consumer protection law.
The trap
Treating deceptive AI marketing as a bias or physical-defect issue rather than an unfair/deceptive practice.

How to remember it

Misleading capability claims that consumers rely on are unfair or deceptive practices under consumer protection law.

How many of these would you get right?

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