Virginia Bell Flynn, a partner in Troutman Pepper Locke’s Consumer Financial Services Practice Group, was quoted in the AccountsRecovery.net Compliance Digest article, “Sorensen Reintroduces QUIET Act to Combat AI-Powered Robocalls.”

Rep. Eric Sorensen [D-Ill.] is renewing efforts to crack down on robocalls by reintroducing the Quashing Unwanted and Interruptive Electronic Telecommunications (QUIET) Act. The bipartisan bill, co-sponsored by Rep. Juan Ciscomani [R-Ariz.], aims to increase penalties for scammers using AI to impersonate individuals and require robocallers to disclose when AI technology is being used. More details here.

WHAT THIS MEANS, FROM VIRGINIA BELL FLYNN OF TROUTMAN PEPPER LOCKE: Rep. Eric Sorensen [D-Ill.] has reintroduced the Quashing Unwanted and Interruptive Electronic Telecommunications (QUIET) Act to address the growing issue of AI-powered robocalls. The bipartisan bill, co-sponsored by Rep. Juan Ciscomani [R-Ariz.], seeks to increase penalties for scammers who use AI to impersonate individuals and mandates that robocallers disclose when AI technology is being utilized. This legislative effort aims to protect consumers from deceptive and intrusive robocalls.

The reintroduction of the QUIET Act by Rep. Eric Sorensen [D-Ill.] and Rep. Juan Ciscomani [R-Ariz.] has several practical implications for companies that place consumer-facing calls. Understanding whether prerecorded messages are considered AI will be an interesting part of this statute, but a few things to consider and think about:

Disclosure Requirements: Businesses must ensure transparency by disclosing the use of AI technology in their robocalls. This means updating scripts and communication protocols to inform consumers when AI is being used, which could involve additional training for staff and adjustments to automated systems.

Increased Penalties: Companies using AI technology for robocalls must be aware of the heightened penalties for non-compliance. This includes potential fines and legal repercussions for using AI to impersonate individuals without proper disclosure. While it is a little unclear what those penalties would be exactly, the fines would be double if disclosures are not provided.