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AI Marketing & Content (Authentic, Cited)Lesson 7 of 11

7 · The law and ethics of marketing with AI

Marketing is one of the most regulated things a business does, and using AI does not lower the bar — in places it raises it. You don't need a law degree, but you must know these four rules cold, because breaking them can mean fines, lawsuits, or a dead brand. (This is general education, not legal advice — for your situation, ask a real lawyer.)

1 · Claims must be truthful and substantiated. You can't say things that aren't true or that you can't back up. The FTC is explicit that AI-related performance claims must be substantiated — don't say your product "uses AI" if it doesn't, and don't exaggerate what it does (FTC, 2023). "The AI wrote it" is not a defense for a false claim.

2 · No fake reviews or fake testimonials — it's now illegal. Under the FTC's Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465, effective Oct. 21, 2024), it is illegal to write, buy, sell, or distribute fake or false reviews and testimonials — including AI-generated ones from people with no real experience — and to buy or sell fake indicators of social-media influence like bogus followers. The rule also bars certain undisclosed insider reviews and company-controlled "independent" review sites. Violations can carry civil penalties up to $51,744 per violation (FTC, 2024). AI makes faking reviews easy; that does not make it legal.

3 · Disclose paid endorsements and material connections — clearly. If someone endorses your product and has a material connection to you — you paid them, gave free product, or they're family or staff — that connection must be disclosed clearly and conspicuously, in each post, placed where people will actually see it (FTC, n.d.). The same applies when you endorse something. Burying "#ad" where no one notices doesn't count, and a platform's built-in tool alone isn't enough.

4 · Know the copyright limits on AI output. The U.S. Copyright Office concluded that purely AI-generated material isn't protected by copyright, and prompting alone is not enough to make an AI's output yours — copyright requires human authorship (U.S. Copyright Office, 2025). Practical meaning: a logo, jingle, or post you got from a single prompt may be something you can't legally own or stop others from copying. Your human creative contributions — your edits, arrangement, and original writing — are what's protectable. Also respect others' copyrights and your tools' terms of use.

Check yourself. A friend will post a glowing 5-star review of your product if you send them a free unit. Name two distinct FTC problems with treating that as an ordinary, independent review.

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