The FTC warned about ‘quiet’ TOS changes for AI training. Here’s why it might not be enough.

The Federal Trade Commission (FTC) recently issued a warning to companies engaging in surreptitious changes to their Terms of Service, cautioning that such actions could be deemed unfair and deceptive. The motivation for altering privacy policies often arises from the desire to leverage user data for training artificial intelligence (AI) models, a trend with notable examples in the tech industry.

In a notable incident from July 2023, Google revised its privacy policy to encompass the use of public data for AI enhancement, while Zoom discreetly updated its TOS in August 2023, explicitly stating its right to employ user data for AI training without an opt-out option. Similar discontent surfaced in June 2023 among Adobe Stock creators, who were dismayed by the lack of notice regarding the utilization of their uploaded content in Adobe’s Firefly AI tool.

Miscommunications about policy changes reflect a broader issue: data consumers often overlook the fine print of countless Terms of Service agreements. Studies reveal that a significant portion of consumers agree to terms without thorough comprehension, indicative of the prevalent practice. Notably, a Deloitte survey highlighted that a substantial percentage of individuals, particularly among younger demographics, consent to conditions without reading them.

Amidst this landscape, advocacy for diligent scrutiny of software terms and conditions has gained traction. Suggestions to carefully review TOS documents underline the importance of understanding the rights users may inadvertently forfeit to tech corporations. Notably, updates to Terms of Service, especially concerning AI usage, often clarify existing permissions rather than introduce new practices. Legal experts suggest that companies must notify users of substantial alterations for enforceability, emphasizing compliance with evolving privacy regulations such as the California Consumer Privacy Act (CCPA).

The evolving regulatory climate and heightened scrutiny have prompted tech companies to reassess their data collection practices and transparency measures, acknowledging the need for informed user consent. Instances such as the FTC’s actions against Ring and Amazon underscore the imperative of clear and accurate user notifications regarding data utilization for training AI models.

Amidst ongoing developments, recent concerns arose over planned updates to the Terms of Service by Findaway Voices by Spotify, sparking apprehension about the potential use of audio narration for AI training. Swift responses by concerned parties, including assurances of clarifications to allay anxieties, indicate a growing awareness of the importance of transparency and user understanding in tech policies.