| Update Applicable to: | Effective Date |
| All Covered Employers | See Details Below |
What happened?
On December 24, 2024, the Attorney General issued guidance to help businesses minimize legal risks and ensure compliance when using AI technologies. Oregon’s existing consumer protection, data privacy, and anti-discrimination laws fully apply to AI models. When developing and using AI technologies, businesses must prioritize consumer protection, privacy, and fairness.
Overview:
Background
- AI Evolution: AI has shifted from deterministic to probabilistic computing, introducing opportunities and risks.
- Opportunities: AI can streamline tasks, personalize services, and make data-driven decisions.
- Risks: Concerns include privacy, discrimination, and accountability due to AI’s reliance on large datasets and potential biases.
Obligations of Oregon’s Laws to AI
- Unlawful Trade Practices Act (UTPA)
- Material Defects: Companies must disclose known defects in AI products.
- Misrepresentation: False claims about AI capabilities or endorsements are prohibited.
- False Urgency: Misleading claims about limited-time offers are not allowed.
- Price Gouging: AI-driven pricing during emergencies must not be excessive.
- AI-generated Robocalls: False information in AI-generated calls is prohibited.
- Unconscionable Tactics: Using AI to take advantage of consumer ignorance is not allowed.
- Oregon Consumer Privacy Act (OCPA)
- Notice and Consent: Clear disclosure of data use and consumer rights is required.
- Sensitive Data: Explicit consent is needed for using sensitive data.
- Controller Liability: Developers using third-party data must comply with privacy standards.
- Retroactive Notices: Prohibited; affirmative consent is required for new data uses.
- Data Protection Assessments: Required for high-risk data processing activities.
- Oregon Equality Act
- Data Breach Notification: Businesses must notify consumers and the Attorney General in case of a data breach affecting AI systems.
- Oregon Consumer Information Protection Act
- Anti-Discrimination: AI systems must avoid biased outcomes that discriminate based on protected characteristics.
Source References
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