She is a former FTC Chair so she knows what she's talking about, although her approach to enforcement was more expansive than others. The FTC would investigate, likely along the lines she summarizes, build a case in writing, and refer it to the Justice Dept, which would actually prosecute the case. Not going to happen under this administration, but Khan is saying it's entirely possible that such an enforcement action could be brought to bear, now or later. Personally I hope she gets her job back at some point and does it herself.

I see nothing unrealistic about classing these so-called AI bots as "dangerous and defective product".

> I can't tell if Khan is being realistic when she says laws against “unfair or deceptive [acts]” or “unfair methods of competition” apply to AI labs. Her 2-sentence justifications aren't enough to convince me.

As I read it, her whole point is that those laws apply to everyone, including AI Labs.

She isn't saying AI Labs are in violation of those laws (though she is implying they should be scrutinized for possibly being so), she's just saying that if they do violate those laws... well, those laws are already on the books and AI Labs aren't special unicorns for which existing laws somehow don't apply.