Laws and data licensing
FTC Act Section 5 and AI data licensing
Short answer
Using data in ways that contradict your privacy promises can be deceptive. What your notices said at the time matters.
What it covers#
United States. The federal ban on unfair or deceptive business practices, enforced by the FTC.
Key points for licensing#
- Keep privacy promises
- The FTC has required deletion of models built on improperly used data
- Retroactive changes to privacy terms draw scrutiny
How SourceX handles it#
- Personal details are removed before anything is shared
- Rules that apply are assessed deal by deal with your counsel
- Records that can't be cleared are excluded
- Your company approves every release
General information, not legal advice. Laws change and their application depends on your facts. SourceX assesses which rules apply deal by deal with your counsel. Last reviewed 2026-10-09.