AI Omnibus risks creating dangerous regulatory loopholes and weakening consumer protection

**European AI Omnibus Sparks Consumer Protection Concerns** The European Consumer Organisation (BEUC) has expressed significant disappointment regarding the recently adopted AI omnibus, arguing that instead of fostering competitiveness through simplified AI rules, it risks creating a less secure digital environment for consumers. Key provisions of the AI Act have reportedly been delayed, and dangerous loopholes have emerged within the law's scope, potentially undermining established consumer protections. While certain harmful amendments were blocked during negotiations, the final agreement still rolls back protections for personal data used in AI training and offers disproportionate regulatory advantages to larger companies. Although consumer-facing products like medical devices and toys remain within the AI Act's purview, the exemption of machinery from higher scrutiny is a point of major concern, weakening oversight for essential daily life technologies and increasing consumer risk. BEUC also voices apprehension that the EU might later limit core AI Act obligations or exempt specific systems through delegated acts, paving the way for future deregulation. The revised AI omnibus is seen by BEUC as creating confusion for both businesses and consumers, leading to a more complex and less effective regulatory framework. The organization calls for strengthened protections concerning the use of special category data for AI training, deeming current safeguards insufficient. Moving forward, BEUC urges legislators to learn from this process and ensure that future digital policy, such as the Digital Omnibus on GDPR, upholds the highest data protection standards for consumers.