What are the laws that govern the use of artificial intelligence in e-commerce?

In California, the law governing the use of artificial intelligence (AI) in e-commerce is the California Consumer Privacy Act (CCPA). The CCPA was enacted in 2018, and it is designed to protect consumers’ personal information from being used by companies for any purpose that is not in the consumers’ best interests. The CCPA requires companies to provide consumers with notice before collecting their data, give consumers the right to opt-out of the collection of their data, and provide them with reasonable access to their data upon request. Companies must also take reasonable steps to protect the security of the data they collect, and they must delete the data after a reasonable length of time. The CCPA also includes provisions concerning the use of AI in e-commerce. Companies are required to be transparent about how they use and process personal data collected via AI, and provide consumers with reasonable control over the collection and use of their data. Companies are also prohibited from using AI to target ads or other communications to consumers based on sensitive characteristics, such as race, gender, or sexual orientation. The CCPA is currently the only state law in California specifically related to the use of AI in e-commerce. However, the California Supreme Court has held that companies must take reasonable steps to prevent the misuse of AI applications in order to comply with state and federal laws, such as the Unfair Competition Law and the False Advertising Law. Additionally, companies must remain vigilant of the potential implications of new state and federal laws that may be enacted in the future.

What are the laws that govern the use of artificial intelligence in e-commerce?

Related FAQs

Related Blog Posts