Massachusetts AG Issues Advisory on AI and Consumer Protection Laws

Troutman Pepper

[co-author: Stephanie Kozol]*

Massachusetts Attorney General (AG) Andrea Joy Campbell issued an advisory to provide guidance on how state consumer protection, anti-discrimination, and data security laws apply to artificial intelligence (AI). The advisory emphasizes that these existing laws apply to emerging technology, including AI systems.

AI systems, capable of making predictions, recommendations, or decisions that influence real or virtual environments, are increasingly being used in various sectors. The AG acknowledges the potential societal benefits of legally compliant AI usage and encourages innovation. The advisory addresses AI by clarifying the application of existing laws and regulations.

The advisory lists several acts and practices that allegedly may be considered unfair and deceptive under the Massachusetts Consumer Protection Act, including falsely advertising the quality of AI systems, supplying a defective AI system, misrepresenting the reliability of an AI system, and failing to comply with Massachusetts statutes that protect the public’s health, safety, or welfare.

The advisory also claims that the Commonwealth’s anti-discrimination laws prohibit AI developers, suppliers, and users from using technology that discriminates against individuals based on a legally protected characteristic. It further emphasizes the need for AI developers, suppliers, and users to safeguard personal data utilized by AI systems and comply with the state’s data breach notification requirements.

Why It Matters

As use of AI proliferates, Campbell’s advisory serves as a signal that state AGs are increasingly monitoring the technology’s implications on consumer protection. The advisory further demonstrates that in the absence of a clear regulatory framework, state AGs will leverage existing laws to investigate and bring enforcement actions against parties alleged to be engaging in wrongdoing. Therefore, developers, suppliers, and users of AI should proactively ensure their AI products comply with existing state laws and regulations to the greatest extent possible.

*Senior Government Relations Manager

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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