The prohibition on unfair or deceptive practices | AIGP
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The prohibition on unfair or deceptive practices: From a consumer-protection standpoint, which principle does

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

Unsubstantiated claims likely to mislead consumers fall under the prohibition on unfair or deceptive practices.

The question

A firm advertises that its AI app 'guarantees' users will pass professional licensing exams, a claim it cannot substantiate. From a consumer-protection standpoint, which principle does this most directly implicate?

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  1. The requirement to conduct a data protection impact assessment before the app processes any of the users' personal data.
    Plausible but wrong: a DPIA is a privacy duty, unrelated to the misleading advertising claim.
  2. The prohibition on unfair or deceptive practices, since unsubstantiated claims are likely to mislead ordinary consumers.
    Correct: unsubstantiated 'guarantee' claims that mislead consumers are deceptive practices.
  3. The obligation to obtain a CE mark certifying that the app meets high-risk conformity-assessment requirements beforehand.
    Wrong: CE marking is a product-conformity concept, not a consumer-protection advertising rule.
  4. The rule that all software must carry a two-year warranty regardless of whether its advertising claims are truthful at all.
    Wrong: warranty duration does not address the deceptive nature of the advertising claim.
The trap
Confusing a deceptive-advertising issue with unrelated privacy or product-conformity obligations.

How to remember it

Unsubstantiated claims likely to mislead consumers fall under the prohibition on unfair or deceptive practices.

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