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.
In short
- Law
- FTC Act Section 5
- Jurisdiction
- United States
- Applies to
- The federal ban on unfair or deceptive business practices, enforced by the FTC.
- Last reviewed
- 2026-10-09
- 01Your work records
- 02Personal details removed
- 03You approve the release
- 04Licensed to AI developers
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
Frequently asked questions
What does the FTC Act Section 5 cover?
United States. The federal ban on unfair or deceptive business practices, enforced by the FTC.
Does licensing company records to an AI developer fall under the FTC Act Section 5?
Using data in ways that contradict your privacy promises can be deceptive. What your notices said at the time matters.
What are the key points of the FTC Act Section 5 for data licensing?
Keep privacy promises. The FTC has required deletion of models built on improperly used data. Retroactive changes to privacy terms draw scrutiny.
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.