BT-REQ-1940 Consumer Holiday Guide 2023 v9 BH - Flipbook - Page 10
Harnessing the power
of GenAI this holidAI season
Lauren Cury
PJ Kaur
Counsel
Washington, D.C.
Senior Associate
Hong Kong
As the holiday season approaches, many consumers are turning to
AI chatbots for holiday shopping ideas. For consumer businesses,
generative AI has a wide range of use cases, from product conception
and advertising to personalized customer service. With AI,
brands and retailers can create limited edition designs, tailored
marketing campaigns, personalized recommendations, virtual tryon experiences, chatbots, and more – all at the click of a button.
While AI is an incredibly useful
tool, brands and retailers should be
aware of its intellectual property (IP)
implications, and are well-advised to
consider the following questions:
• How is the AI tool trained? In many
cases, the data used to train AI is
subject to third party IP rights such
as copyright, and the AI developer
may or may not have obtained the
permission of the rights owners.
• Who will be liable in the event AIgenerated output infringes on third
party IP rights, or if an AI chatbot
misleads consumers?
• Can you own or obtain IP protection
for AI-generated output? What
degree of human input is required to
obtain copyright or patent protection
where you operate?
• What are the disclosure requirements
relating to AI use, and AI advertising
in particular?
There is still not much clarity on these
issues in many jurisdictions. This
holiday season, businesses will help
ensure all stay jolly by keeping apprised
of the legal and regulatory landscapes
and developments in AI, and by ensuring
strategic and informed use of this
exciting technology.
1.
NRF | 2023 Holiday to Reach Record Spending Levels.
2.
2022 Consumer Returns in the Retail Industry (nrf.com).
3.
Some states, however, do regulate merchandise returns and refunds. See California (Refund Policies | State of California - Department of Justice - Office of the Attorney General);
Connecticut (Returns and Exchanges (ct.gov); Florida (Statutes & Constitution :View Statutes : Online Sunshine (state.fl.us); Hawaii (Department of Commerce and Consumer Affairs |
Refunds and Exchanges (hawaii.gov); Maryland (Consumers’ Frequently Asked Questions (marylandattorneygeneral.gov)); Massachusetts (A Massachusetts Consumer Guide to Shopping
Rights | Mass.gov); Minnesota (Sec. 325F.80 MN Statutes); New Jersey (refund-policy-disclosures (njconsumeraffairs.gov)); New York (Refunds, Rebates, and Rainchecks | Department of
State (ny.gov)); Ohio (Refund Policies and Restocking Fees - Ohio Attorney General Dave Yost); Rhode Island (webserver.rilegislature.gov//Statutes/TITLE6/6-27/6-27-9.htm); Utah (Utah
Office of Administrative Rules); and Virginia (Virginia Consumer Protection Act).
