Artificial Intelligence Governance Professional AIGP · Free Practice Question Medium
Question 24
A mobile app uses AI to recommend financial products to users but fails to disclose that some recommendations are paid advertisements. Which consumer protection law risk does this practice create?
- A Increased algorithmic bias in recommendations
- B Unintentional data privacy violation
- C Excessive computational cost for recommendations
- D Deceptive act or practice due to lack of clear disclosure
Reveal correct answer
Correct answer: D
Explanation
Consumer protection laws prohibit unfair and deceptive practices, including failure to clearly disclose advertising relationships in AI-driven services.A. While bias may exist, the legal risk here is nondisclosure.
B. Privacy is not the central issue in this scenario.
C. Costs are not regulated by consumer protection laws.
D. Failing to disclose paid placements is likely to be considered deceptive under consumer protection laws.
Discussion
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