The California Privacy Protection Agency (CPPA) is preparing new regulations to protect consumers from how businesses may potentially use AI. The state regulator, whose rulings have an outsized influence on Big Tech given the many large firms that are headquartered there, has issued draft rules for how consumer data can be used in what it is calling “automated decisionmaking technology,” or ADMT. The proposed regulations give consumers the right to opt out of ADMT and entitles the public to on-demand information as how AI is interacting with their data and how businesses plan to use it. Continue reading California Privacy Protection Agency Issues Draft Rules for AI

California Governor Gavin Newsom has released a report examining the beneficial uses and potential harms of artificial intelligence in state government. Potential plusses include improving access to government services by identifying groups that are hindered due to language barriers or other reasons, while dangers highlight the need to prepare citizens with next generation skills so they don’t get left behind in the GenAI economy. “This is an important first step in our efforts to fully understand the scope of GenAI and the state’s role in deploying it,” Newsom said, calling California’s strategy “a nuanced, measured approach.” Continue reading Newsom Report Examines Use of AI by California Government

Google has filed suit in federal district court in California to stop alleged fraudsters from leveraging public interest in artificial intelligence generally and Bard in particular to spread malware. The perpetrators, who are believed to be based in Vietnam, are said to be using Facebook to promote an “unpublished” version of Bard that when downloaded installs password-stealing malware into the host system. The suit claims the scammers are using Google’s trademark-protected intellectual property — including its name and that of Bard, its brand look and colors, and photographs of CEO Sundar Pichai to promote an illegal scheme. Continue reading Google Seeks Out Scammers Using Bard to Spread Malware

Spotify will reportedly change its royalty payout formula beginning next year in an effort to cut out scammers and more equitably distribute funds among “legitimate artists” and rightsholders. As a result, it is estimated that about $1 billion in royalty payments will be redistributed over the next five years. The streamer is considering setting a minimum number of annual streams to qualify for royalty payments — which is generating controversy — as well as sanctions on distributors and labels determined to be fraudulently manipulating streams, and adding a playtime threshold that targets so called “noise tracks” designed to emulate music. Continue reading Spotify to Introduce New Version of Its Royalty Payout Model

A federal court has approved an agreement between Binance co-founder and CEO Changpeng Zhao and the Securities and Exchange Commission that will allow the embattled cryptocurrency firm to continue operating while fighting an SEC civil fraud lawsuit, the outcome of which may determine the future of the crypto business in the United States. Filed June 5, the Binance charge rocked an industry already reeling from market turmoil and SEC complaints against Coinbase and the founder of FTX. The SEC initially moved to freeze Binance’s U.S. assets, but the company said that would put it out of business here. Continue reading SEC Provides Binance a Lifeline as It Pursues Fraud Charges

Deezer, the global music streaming platform based in France, claims to have developed a technique for flagging — and potentially deleting — songs that use artificial intelligence to simulate the performance of popular singers. “We need to take a stand now,” Deezer CEO Jeronimo Folgueira said in an interview. “We are at a pivotal moment in music.” His company plans to “weed out illegal and fraudulent content” in an effort to protect artists. Deezer’s detection technology is still under development. It relies on AI, which Folgueira said he is not against if it is used ethically. Continue reading Deezer Says Its Tech Can Flag and Delete Deepfake AI Tunes

Agencies across the federal government are actively exploring steps to regulate artificial intelligence, seeking to ensure it is safe now while minimizing future harms. The Commerce Department this week issued a public request for comment to be accepted within the next 60 days, then used by U.S. policymakers as they consider new rules for a consumer technology sector that has exploded globally in 2023. The move by Commerce comes on the heels of a scathing advisory by the Federal Trade Commission, which has been examining ways generative AI could be misused for scams or fraud. Continue reading Federal Government Continues to Grapple with AI Guidelines

Google is launching an Ads Transparency Center. The “searchable hub” rolls out to global users in the coming weeks and lets anyone look up who’s behind an ad, which ads an advertiser ran and where across Google Search, YouTube and the Google Display Network. Additional details are provided for political ads, including the amount spent, number of impressions and any location targeting criteria. In 2020 Google began requiring that advertisers verify their identities, and a year later began letting users access some ad info, but its transparency move follows Facebook’s similar offering, which launched in 2019. Continue reading Google Ads Transparency Center Offers Searchable Ad Data

OpenAI is adding plug-in support for ChatGPT, a major upgrade that lets the chatbot incorporate current web data, as opposed to being limited to training data ending in 2021. Initially, the company is allowing 12 external plug-ins, including those from Expedia, Instacart, OpenTable, Shopify, Slack and Zapier. The group has been invited through a waitlist. “We’re starting with a small set of users and are planning to gradually roll out larger-scale access as we learn more,” explained OpenAI, which is also introducing two plug-ins of its own: a web browser and code interpreter. Continue reading OpenAI Adds Browser, Plug-In and API Support for ChatGPT

The Federal Trade Commission is cracking down on fraudulent tech advertising, which escalated substantially during the COVID-19 pandemic, issuing orders to eight social media and video streaming platforms seeking information on commercial practices that are deceptive or expose consumers to false health-care products, financial scams and counterfeit or fake goods. The action compels services including Meta Platforms’ Instagram, Alphabet’s YouTube, ByteDance’s TikTok and Amazon’s Twitch to provide answers in 45 days so the FTC can analyze their practices. In addition to fact-finding, the order is intended to pressure the companies to self-regulate. Continue reading FTC Demands Info from Tech Firms in Fight Against Ad Fraud

British legislators seem ready to make good on a threat to add criminal liability and jail time for high-level social media executives who fail to protect children from online harm as part of the Online Safety Bill. While the bill also aims to protect adults from fraud and malfeasance, its strictest provisions are geared toward child protection. The current proposal could win approval by the House of Commons within the week, and would then move to the upper chamber, the House of Lords, later in the quarter for further revision. Enactment is anticipated by year’s end.
Continue reading UK Online Safety Bill to Exert Pressure on Social Media Execs

A group of 26 Taylor Swift fans have filed a lawsuit against Ticketmaster, alleging anticompetitive conduct and fraud after a glitch resulted in the ticketing service canceling sales to Swift’s “Eras” tour, leaving thousands of fans — some of whom waited four to eight hours in ticket queues last month — “empty-handed and unhappy,” according to The New York Times. Their outcry resulted in not only a 33-page complaint filed in California Superior Court in Los Angeles, but also Congressional demands to unwind the 2010 merger of Ticketmaster and Live Nation. Swift’s 52-show Eras tour is scheduled to begin in March. Continue reading Taylor Swift Fans File Class Action Suit Against Ticketmaster

TikTok is taking steps to ensure U.S. user data is secure and that young people will be protected from harmful content, company CEO Shou Zi Chew said at The New York Times’ DealBook Summit. “We have very rigorous data-access protocols,” the executive said Wednesday, addressing concerns expressed by members of Congress and the Federal Trade Commission. Chew said TikTok, which is owned by Beijing-based ByteDance, plans to work with Oracle as its data storage provider based in large part on the company’s strong security protocols. Continue reading TikTok CEO Shou Zi Chew Determined to Solve Data Issues

The two individuals who once ran MoviePass have been charged with engaging in a criminal scheme to defraud investors of Helios and Matheson Analytics (HMNY), a publicly traded company based in Florida and New York that invested and then took over the subscription-based movie ticketing service. Ted Farnsworth, former chairman and CEO of MoviePass parent HMNY, and Mitch Lowe, former MoviePass CEO, are each charged with one count of securities fraud and three counts of wire fraud. If convicted, the Florida men face possible prison time of 20 years per count. Continue reading Execs Who Ran MoviePass Charged in Alleged Fraud Scheme

A former Twitter security chief may be Elon Musk’s white knight in the billionaire’s effort to get out of his contract to purchase Twitter for $54.20 per share ($44 billion). Peiter Zatko filed a whistleblower disclosure to Congress and federal agencies claiming Twitter not only deceived shareholders and the public by misrepresenting its bot count and security measures, but also alleging “that one or more current employees may be working for a foreign intelligence service,” according to CNN. If true, the allegations would violate a 2011 agreement between Twitter and the Federal Trade Commission. Continue reading Charges Made by Twitter Whistleblower Could Benefit Musk