







The FTC’s new AI policy proposal is easy to misread. It does not say every hallucination violates consumer law. It says something narrower: if an AI is sold as aiming at the user’s objective, secretly steering it toward a different objective may be deception.
Jul 13, 2026 at 8:02 PM
AI Therapy Bots Are Conducting 'Illegal Behavior,' Digital Rights Organizations Say
Exclusive: An FTC complaint led by the Consumer Federation of America outlines how therapy bots on Meta and Character.AI have claimed to be qualified, licensed therapists to users, and why that may be breaking the law.

Lawyer Caught Using AI While Explaining to Court Why He Used AI
The attorney not only submitted AI-generated fake citations in a brief for his clients, but also included “multiple new AI-hallucinated citations and quotations” in the process of opposing a motion for sanctions.

Bernie Sanders has AI policy all wrong
His criticisms are responding to industry hype, not the real harms of generative AI

Study Finds Consumers Are Actively Turned Off by Products That Use AI
Researchers have found that including the words "artificial intelligence" in product marketing is a major turn-off for consumers.

Michael Geist -
The Standing Senate Committee on Social Affairs, Science and Technology is one of several committees in the House and Senate conducting hearings on artificial intelligence. I appeared before the committee yesterday (my fourth appearance on the issue in recent months), but rather than reiterate previous testimony on privacy, copyright, and transparency, I focused on the big issue of the moment: bans on social media and AI chatbots for children. The committee had been hearing from many supportive witnesses who emphasized the risk of harm associated with AI. Indeed, one Senator asked the panel before mine to raise their hands if they supported a ban, and virtually all hands went up. I was unsure about how my comments would be received, but I found the Senators open to debate on the issue. A video of my opening remarks, together with the transcript, is posted below. A future Law Bytes podcast episode will delve into the discussion that followed.
Brands Adopt ‘No AI’ Disclaimers to Stand Out Amid the Slop
Marketers move to get ahead of growing consumer skepticism by labeling content that doesn’t use AI.
'The ability to say no': Artists demand consent over AI use of their music
As labels strike deals with AI start-ups, advocacy groups warn that the artists whose voices and work make those deals valuable are being shut out.

AI ruling prompts warnings from US lawyers: Your chats could be used against you
As people increasingly turn to artificial intelligence for advice, some U.S. lawyers are telling their clients not to treat AI chatbots like trusted confidants when their freedom or legal liability is on the line.

Where AI Regulation Stands Today
The White House has released a National Artificial Intelligence Legislative Framework and new executive orders aiming to establish a single, nationwide standard for AI regulation...
Project APE: Can policy evaluation be automated? Or is hallucinated slop unavoidable? Let's find out.
An open experiment: AI writes economics papers end-to-end, then competes against peer-reviewed research. Everything public—papers, code, data, failures.
The Consumer AI Revolution Won’t Be Technical. It’ll Be Emotional.
In technology, the obvious revolutions often come last.
What Can We Learn From the FDA Model for AI Regulation? - AI Now Institute
After holding a rapid deliberation late last year that convened deep experts on the FDA alongside key participants in the AI policy debate, we pulled together several immediate insights into a memo. Though it was clear the path forward isn’t to port over any single regulatory model wholesale, hosting a deep dive into the Food […]

🚨Our new research examines agentic shopping: can you consistently predict (or, using marketing, influence) what an agent chooses? Nope. We found that even small differences (viewing order of pages, memories) changed AI preferences in unpredictable ways. papers.ssrn.com/sol3/papers.cfm?abstract_id=7…
As promised, we’ve created a policy document outlining our thoughts on AI and agentic coding (AI for software development). We’re releasing a vote later this week for Blacksky community members to offer their feedback. We look forward to hearing from you all.
Blacksky Algorithms' Policy Towards Agentic Coding
blackskyweb.xyzRe: fake citations and the like, not laws regulating AI * I’m neither “pro-AI” nor “anti-AI.” I’ve been blocked for being perceived as both. —Actually, I’m honestly more anti-AI than pro-AI thus far, aside from specialized models and specific use cases, but I’m willing to consider information that’s new to me

Lawyers Caught Citing AI-Hallucinated Cases Call It a 'Cautionary Tale'

Person Hides Prompt Injection in Legal Filing Telling AI to Side With Them

‘Show How 3M Is 0% at Fault:’ Expert Witness Used ChatGPT to Write Report Defending Company in Deadly Explosion Lawsuit

Watch These Judges Rip Into Lawyers For Citing Cases That Don't Exist

Lawyer Caught Using AI While Explaining to Court Why He Used AI

18 Lawyers Caught Using AI Explain Why They Did It