Sorry, I’m a law dummy: Are these maximum penalties one-offs? As in, can a company just pay $1M in fines whenever they’re caught ignoring CA SB 53 and then go right on ignoring it with no escalating consequences?
Well firstly note that the RAISE act has $1M - $3M escalating fines explicitly built in.
But yes, my understanding is that if you pay up, you can carry on. However, they can be fined “per violation” and the law does not precisely define what this means. So the Attorney General can argue that each missed requirement / each non-complying model is a separate violation. Or if they’re feeling very aggressive, the AG could try to say that each day of non-compliance is a separate violation, but that may not hold up in court.
This is where injunctive relief could come in, to directly order a company to retract a model. As noted, this was only explicitly included in the RAISE act[1], and that looks set to be removed. However, AGs can often get injunctions even without explicit statutory language.
EU AI Act:
No, the consequences will escalate. Fines can be periodic, the maximum fine is huge and the length of the infraction is a factor in determining the penalty.
And on top of that, companies have a duty to take “immediate corrective actions”. The Commission (with advice from the AI Office) can issue administrative orders requiring the withdrawal of a model. And ignoring that can get you into very heavy fines or criminal penalties.
Sorry, I’m a law dummy: Are these maximum penalties one-offs? As in, can a company just pay $1M in fines whenever they’re caught ignoring CA SB 53 and then go right on ignoring it with no escalating consequences?
US laws:
Well firstly note that the RAISE act has $1M - $3M escalating fines explicitly built in.
But yes, my understanding is that if you pay up, you can carry on. However, they can be fined “per violation” and the law does not precisely define what this means. So the Attorney General can argue that each missed requirement / each non-complying model is a separate violation. Or if they’re feeling very aggressive, the AG could try to say that each day of non-compliance is a separate violation, but that may not hold up in court.
This is where injunctive relief could come in, to directly order a company to retract a model. As noted, this was only explicitly included in the RAISE act[1], and that looks set to be removed. However, AGs can often get injunctions even without explicit statutory language.
EU AI Act:
No, the consequences will escalate. Fines can be periodic, the maximum fine is huge and the length of the infraction is a factor in determining the penalty.
And on top of that, companies have a duty to take “immediate corrective actions”. The Commission (with advice from the AI Office) can issue administrative orders requiring the withdrawal of a model. And ignoring that can get you into very heavy fines or criminal penalties.
Except on whistleblower protections, where SB 53 explicitly includes injunctive relief.