Short answer: Not quietly, and not retroactively for data you already hold. FTC staff wrote that it may be unfair or deceptive to adopt more permissive data practices, such as using data for AI training, and tell consumers only through 'a surreptitious, retroactive amendment' to terms or a privacy policy.
On this page
What the FTC said
'It may be unfair or deceptive for a company to adopt more permissive data practices—for example, to start sharing consumers' data with third parties or using that data for AI training—and to only inform consumers of this change through a surreptitious, retroactive amendment to its terms of service or privacy policy' (FTC, Feb 13, 2024).
What it means for a license
- Data collected under your old promises stays under those promises.
- Customer data is usually the wrong place to start; internal operating records are easier.
- Any policy change for future data should be clear and get counsel's review.
Buyers' view
Mode says AI developers want to learn how work moves through a business, 'not who its customers are' (Mode affiliate FAQ).
This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.
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Frequently asked questions
Can we notify customers and proceed?
Notice alone may not be enough for data collected under earlier promises. Ask counsel.
Does this apply to B2B customers?
Contracts and privacy laws can still apply. Check them.
Sources
- FTC Office of Technology: Quietly changing your terms of service could be unfair or deceptive (Feb 13, 2024)ftc.gov
- Mode affiliate FAQ (PDF, dated Oct 14, 2026)bizbuydata.com
Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.
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