The prohibition on deceptive acts applies because: Under consumer-protection law, which theory applies most
Making material, unsubstantiated claims likely to mislead consumers is a deceptive practice under consumer-protection law.
The question
A company markets an AI chatbot as providing 'licensed medical advice,' though no clinician supervises it and it frequently errs. A regulator opens an inquiry. Under consumer-protection law, which theory applies most directly to the marketing?
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- The prohibition on deceptive acts applies because the marketing makes material claims likely to mislead reasonable users. ✓Correct: unsubstantiated, material claims that are likely to mislead consumers are classic deceptive practices.
- Product-liability design-defect rules apply because the chatbot is a tangible good sold through ordinary retail stores.Plausible but wrong: the issue is misleading advertising, not a defect in a tangible product.
- Copyright fair-use doctrine applies because the chatbot summarizes protected medical literature during its conversations.Plausible but wrong: fair use concerns copying protected works, not the truthfulness of marketing claims.
- Antitrust monopolization rules apply because the chatbot competes against licensed physicians in the medical-advice market.Wrong: antitrust addresses competition harms, not misleading claims made to consumers.
The trap
Framing every AI harm as product liability instead of recognizing a deceptive-marketing claim. How to remember it
Making material, unsubstantiated claims likely to mislead consumers is a deceptive practice under consumer-protection law.
How many of these would you get right?
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