AI and Telemarketing: A New Frontier for FCC Regulation
The FCC Draws a Line
In a significant ruling released on February 8, 2024, the Federal Communications Commission (FCC) clarified that telemarketing and other calls made to consumers using artificial intelligence (AI) technologies are subject to the restrictions outlined in the Telephone Consumer Protection Act (TCPA). This means that such calls are unlawful unless the caller has obtained the necessary consent from the consumer recipient.
The FCC’s Focus on AI-Generated Voices
The FCC specifically targeted AI technologies that can simulate or “emulate real or artificially created human voices for telephone calls to consumers.” The Commission expressed concerns about how these capabilities could be used to deceive or harm consumers. While the ruling didn’t provide a comprehensive list of covered technologies, it highlighted “voice cloning” as one example.
No Exceptions for AI-Powered “Live Agents”
In response to comments from state attorneys general, the FCC made it clear that the TCPA does not allow for any exemptions for AI-generated calls that mimic the experience of a live agent. This means that even if an AI call is designed to sound like a human is speaking, it still falls under the TCPA’s regulations.
Implications for Businesses
Given the increasing focus on AI issues across various industries, businesses should take a broad view of this ruling. It’s essential to strictly adhere to the FCC’s directive that callers must obtain prior express consent from the called party before making a call that utilizes AI-generated or prerecorded voice technology. For calls that contain advertising or telemarketing, written consent is required.
Additionally, AI-generated calls must include identification and disclosure information about the entity responsible for initiating the call. For advertising or telemarketing calls, an opt-out mechanism must also be provided.
The Bottom Line
The FCC’s ruling sends a clear message: AI-powered telemarketing calls are not exempt from the TCPA’s regulations. Businesses must be prepared to adapt their practices to comply with these new requirements and protect consumers from unwanted and potentially harmful calls.
At TLD, we are closely monitoring these developments to ensure we remain compliant with the FCC and TCPA regulations. While we don’t currently utilize AI technology we recognize the potential impact of AI on the industry and are committed to staying informed about best practices and legal requirements.
