FTC Act Section 5, unfair or deceptive practices in AI and data

Identifier

Identifier

15 U.S.C. § 45

Level

Federal

Status

In force

Adopted

1914-09-26

Applies from

1914-09-26

Supervisory bodies

FTC

Named requirements

• Deceptive practices

  15 U.S.C. § 45(a)(1)

  Statements that mislead a reasonable consumer, including performance claims about AI features.

• Unfair practices

  15 U.S.C. § 45(n)

  Practices that cause substantial injury consumers cannot reasonably avoid.

• Orders and remedies

  15 U.S.C. § 45(b)

  Consent orders, deletion of data and models, and reporting duties following an action.

Official source

• www.govinfo.gov
• www.ftc.gov

EU acts on the same ground

• CELEX 32024R1689

  The EU text sets requirements before a system is placed on the market. The US section is applied afterwards, to conduct and to claims.

United States case law

4 decisions · Read from CourtListener, Free Law Project on 2026-08-22.

• Intuit v. FTC

  5th Cir.2026-03-20Open to review by a higher court, the source does not state the outcome

• Lozano v. AT & T Wireless Services, Inc.

  504 F.3d 7189th Cir.2007-09-20Open to review by a higher court, the source does not state the outcome

• Federal Trade Commission v. Tashman

  318 F.3d 127311th Cir.2003-01-24Open to review by a higher court, the source does not state the outcome

• Federal Trade Commission v. University Health, Inc.

  938 F.2d 120611th Cir.1991-07-26Open to review by a higher court, the source does not state the outcome