Michigan Attorney General Dana Nessel and Coalition of Attorneys General Tackle Concerns Over Artificial Intelligence Usage in Telemarketing

Introduction

In November 2024, the Federal Communications Commission (FCC) initiated a review of artificial intelligence (A.I.) technology’s implications and usage in consumer communications, particularly telemarketing. This inquiry aimed to assess whether A.I. technologies could act as functional equivalents of real people and how they fit within the existing Telephone Consumer Protection Act (TCPA). Michigan Attorney General Dana Nessel joined a coalition of 26 attorneys general in addressing concerns about the potential harm caused by telemarketers’ use of A.I. and urging the federal government to implement strict restrictions on such practices.

Background: The Telephone Consumer Protection Act (TCPA)

The TCPA, enacted in 1991, serves as a federal law safeguarding consumers from unwanted telemarketing calls, text messages, and faxes. Its primary focus is to curb the use of automated dialing systems or prerecorded voice messages for telemarketing purposes without the consumer’s prior express written consent. The TCPA’s purview includes robocalls, automated calls made using artificial or prerecorded voices, subjecting them to its restrictions.

Concerns Raised by the Coalition of Attorneys General

The coalition of attorneys general, led by Michigan’s own Dana Nessel and Pennsylvania’s Josh Shapiro, expressed several concerns regarding the use of A.I. in telemarketing. These concerns centered on the potential for A.I.-powered robocalls to circumvent TCPA protections and mislead consumers.

Circumventing TCPA Protections

One major concern raised was the ability of A.I. to mimic human speech patterns and voices with startling accuracy. This capability could potentially allow telemarketers to bypass the requirement for obtaining prior express written consent before making telemarketing calls. By employing A.I.-powered robocalls that sound indistinguishable from real people, telemarketers could deceive consumers into answering calls and engaging in conversations, thereby evading the restrictions imposed by the TCPA.

Misleading and Deceptive Practices

Another concern highlighted by the coalition was the potential for A.I.-powered robocalls to engage in misleading and deceptive practices. Telemarketers could harness A.I. to craft highly personalized and targeted messages designed to exploit consumers’ vulnerabilities and pressure them into making purchases or divulging personal information. Additionally, A.I. could be utilized to generate fake reviews, endorsements, and testimonials, bolstering the credibility of products or services being marketed.

Call for Strict Restrictions on A.I. Usage in Telemarketing

In light of these concerns, the coalition of attorneys general urged the FCC to take decisive action in restricting the use of A.I. by telemarketers. Their letter to the FCC emphasized the need for robust regulations that would prevent telemarketers from circumventing the TCPA and engaging in deceptive practices. The coalition specifically advocated for the following measures:

1. Requirement for Prior Express Written Consent:

The coalition strongly advocated for a requirement that telemarketers obtain prior express written consent from consumers before deploying A.I.-powered robocalls. This requirement would ensure that consumers are fully informed about the nature of the call and have the opportunity to opt out of receiving such calls.

2. Clear Labeling and Identification of A.I.-Powered Robocalls:

The coalition also stressed the importance of requiring telemarketers to clearly label and identify A.I.-powered robocalls. This would enable consumers to easily recognize and avoid such calls, minimizing the risk of being misled or deceived.

3. Robust Enforcement and Penalties:

The coalition emphasized the necessity of robust enforcement of A.I.-related telemarketing regulations and the imposition of significant penalties for violations. This would serve as a deterrent against telemarketers engaging in illegal practices and ensure compliance with the law.

Conclusion

The coalition of attorneys general, spearheaded by Michigan Attorney General Dana Nessel, has taken a firm stance against the use of A.I. by telemarketers. Their letter to the FCC underscores the potential risks and harms associated with A.I.-powered robocalls and calls for strict restrictions to safeguard consumers. The FCC’s response to this letter and its subsequent actions will shape the future of A.I. usage in telemarketing and determine the level of protection afforded to consumers from unwanted and deceptive robocalls.