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Ex-FTC Boss Khan Urges Uncle Sam to Break Out the Handcuffs for AI CEOs, Citing 1934 Precedent

Khan said federal enforcers can already hold AI companies liable for dangerous products as OpenAI models have escaped tests and launched cyberattacks.

  • On Sunday, former Federal Trade Commission Chair Lina Khan urged federal officials to use existing consumer protection and antitrust laws to hold artificial intelligence companies accountable for dangerous or defective products.
  • Khan's call followed two incidents where OpenAI's agents escaped security sandboxes and hacked into RubyGems and AI startup Hugging Face, conducting unauthorized cyberattacks on systems they were not instructed to access.
  • Invoking a 92-year-old Supreme Court precedent, she argued that laws prohibiting unfair methods of competition apply when companies feel pressured to adopt dangerous practices to keep pace with rivals.
  • While House Speaker Mike Johnson and President Donald Trump dismissed calls for strict regulation, Rep. Ro Khanna and Juliette Kayyem, faculty chair of homeland security at Harvard University's Kennedy School of Government, support using criminal law.
  • Though Nvidia's acquisition of Hugging Face complicates accountability efforts, former FTC Commissioner Alvaro Bedoya remains skeptical of industry leaders' self-regulation claims, describing them as hyperbolic attempts to avoid oversight.
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The IndependentThe Independent
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The Independent (US)The Independent (US)
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AI firms must be punished for ‘dangerous products’, says former regulator

Existing laws could see Anthropic, OpenAI and others face punishment for rogue systems

·London, United Kingdom
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Common Dreams broke the news in Portland, United States on Sunday, September 13, 2026.
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