On July 13, the Federal Trade Commission published a notice of proposed rulemaking regarding the Motor Vehicle Dealers Trade Regulation Rule.  The Motor Vehicle Dealers Trade Regulation Rule is aimed at combating certain unfair and deceptive trade practices by dealers and promoting pricing transparency.  Comments to the proposed rule are due on or before September

This quarterly update summarizes key federal legislative and regulatory developments in the second quarter of 2022 related to artificial intelligence (“AI”), the Internet of Things, connected and automated vehicles (“CAVs”), and data privacy, and highlights a few particularly notable developments in U.S. state legislatures.  To summarize, in the second quarter of 2022, Congress and the Administration focused on addressing algorithmic bias and other AI-related risks and introduced a bipartisan federal privacy bill.

Continue Reading U.S. AI, IoT, CAV, and Data Privacy Legislative and Regulatory Update – Second Quarter 2022

On June 3, the New York State legislature passed their version of a right to repair bill—titled the “Digital Fair Repair Act”—that would allow consumers to repair their digital electronic equipment without involving the manufacturer.

Continue Reading Right to Repair: New York State Passes Right to Repair Law

            On April 28, 2022, Covington convened experts across our practice groups for the Covington Robotics Forum, which explored recent developments and forecasts relevant to industries affected by robotics.  Sam Jungyun Choi, Associate in Covington’s Technology Regulatory Group, and Anna Oberschelp, Associate in Covington’s Data Privacy & Cybersecurity Practice Group, discussed global regulatory trends that

            On April 28, 2022, Covington convened experts across our practice groups for the Covington Robotics Forum, which explored recent developments and forecasts relevant to industries affected by robotics.  One segment of the Robotics Forum covered risks of automation and AI, highlights of which are captured here.  A full recording of the Robotics Forum is available

In April 2021, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the “Regulation”), which would establish rules on the development, placing on the market, and use of artificial intelligence systems (“AI systems”) across the EU. The proposal, comprising 85 articles and nine annexes, is part of a wider package of Commission initiatives aimed at positioning the EU as a world leader in trustworthy and ethical AI and technological innovation.

The Commission’s objectives with the Regulation are twofold: to promote the development of AI technologies and harness their potential benefits, while also protecting individuals against potential threats to their health, safety, and fundamental rights posed by AI systems. To that end, the Commission proposal focuses primarily on AI systems identified as “high-risk,” but also prohibits three AI practices and imposes transparency obligations on providers of certain non-high-risk AI systems as well. Notably, it would impose significant administrative costs on high-risk AI systems of around 10 percent of the underlying value, based on compliance, oversight, and verification costs. This blog highlights several key aspects of the proposal.

Continue Reading European Commission Proposes New Artificial Intelligence Regulation

The Federal Communications Commission (“FCC”) is seeking comment on a Notice of Proposed Rulemaking (“NPRM”) that would modify certain aspects of the FCC’s device authorization rules.  Specifically, the FCC is seeking comment on a proposed revision to its device authorization rules to allow the importation of limited quantities of radiofrequency (“RF”) devices prior to authorization for pre-sale activities, including imaging, packaging, and delivery to retail locations.  The FCC also is proposing rule revisions that would allow conditional sales, but not delivery, of RF devices to consumers prior to authorization.

Continue Reading FCC Seeks Comment on Proposal to Change Device Marketing Rules

Connected and automated vehicle (“CAV”) developments in Washington are likely to pick up speed as 2021 rolls in. Indeed, a new presidential administration, new agency leadership, and a new Congress may drive new CAV regulation while also spurring innovation in an industry that many believe can enhance road safety, mobility, and accessibility. For instance, John Porcari, a Biden-Harris campaign advisor and former U.S. Deputy Secretary of Transportation under President Barack Obama, recently indicated that transportation agencies under President Biden would prioritize innovation and technological change and adopt a federal framework for autonomous vehicles.

Lawmakers and regulators, furthermore, will have the opportunity to build on some of the initiatives that picked up speed during the fall of 2020, such as the Safely Ensuring Lives Future Deployment and Research in Vehicle Evolution Act (H.R. 8350) (“SELF DRIVE Act”), the National Highway Traffic Safety Administration’s (“NHTSA”) AV TEST tool, and NHTSA’s request for comment on its proposed framework for Automated Driving Systems (“ADS”) safety. Additionally, the Federal Communications Commission’s (“FCC”) adoption of rules to modernize the 5.9 GHz Band could spur the deployment of CAV technology, and the new administration may reinvigorate inter-agency efforts to examine consumer data privacy and security issues posed by CAVs, as well as CAV-related developments in infrastructure. This post looks down the road ahead for CAV developments in Washington.
Continue Reading IoT Update: The Road Ahead for Connected and Automated Vehicle Developments in Washington

In what is expected to be one of the last meetings under the leadership of current Federal Communications Commission (“FCC”) Chairman Ajit Pai, the agency will consider adopting a Notice of Proposed Rulemaking (“NPRM”) that proposes to modify certain aspects of the FCC’s device authorization rules.  Specifically, the NPRM will propose to allow the importation and conditional marketing and sales of radiofrequency (“RF”) devices that have not yet been approved under the FCC’s rules.  If the rule is ultimately changed, that means companies marketing RF devices for the first time will have the same flexibility enjoyed by some car companies and many other manufacturers to offer a product to the public before it actually can be shipped for use.

Continue Reading FCC Plans to Advance Proposal to Change Device Marketing Rules

FCC Chairman Pai announced today that the FCC will move forward with a rulemaking to clarify the meaning of Section 230 of the Communications Decency Act (CDA).  To date, Section 230 generally has been interpreted to mean that social media companies, ISPs, and other “online intermediaries” have not been subject to liability for their users’ actions.

On July 27, the Trump Administration—acting through the National Telecommunications and Information Administration—submitted a Petition for Rulemaking on Section 230, and Chairman Pai announced on August 3 that the FCC would seek public comment on the petition.  That petition asked the FCC to adopt rules to “clarify” the circumstances under which the liability shield of Section 230 applies.  Citing the FCC General Counsel’s reported position that the Commission has the legal authority to interpret Section 230, Chairman Pai today stated that a forthcoming agency rulemaking will strive to “clarify its meaning.”

Continue Reading FCC Announces Section 230 Rulemaking