Tom Williams
·
gettyimages.comFTC Goes After DoNotPay
Curated by
elymc
3 min read
24,290
285
The Federal Trade Commission (FTC) has taken action against DoNotPay, a company that claimed to offer an AI-powered "robot lawyer," as part of a broader crackdown on deceptive artificial intelligence claims. According to the FTC, DoNotPay has agreed to pay $193,000 and cease making unsubstantiated claims about its ability to replace human lawyers, highlighting the agency's efforts to protect consumers from misleading AI-related marketing.
FTC's Allegations Against DoNotPay
law.com
The FTC's complaint against DoNotPay outlined several specific allegations regarding the company's misleading claims and ineffective services. Key accusations include:
- Falsely advertising its AI service as "the world's first robot lawyer" capable of replacing human attorneys12
- Promising to "sue for assault without a lawyer" and "generate perfectly valid legal documents in no time"3
- Claiming it could "replace the $200-billion-dollar legal industry with artificial intelligence"3
- Failing to conduct testing to verify if its AI chatbot's output matched the competency of a human lawyer23
- Offering an ineffective service that purportedly checked small business websites for legal violations using only an email address13
- Continuing to market itself as a "robot lawyer" despite promising the California Bar in January 2022 to cease such representations4
4 sources
DoNotPay Settlement Terms
As part of the settlement with the FTC, DoNotPay has agreed to pay $193,000 in monetary penalties and provide notice to subscribers from 2021-2023 about the limitations of its legal features
1
2
. The proposed order also prohibits the company from making claims about its ability to substitute for any professional service without evidence to support such assertions1
. This settlement underscores the FTC's commitment to holding companies accountable for deceptive marketing practices, particularly in the rapidly evolving field of artificial intelligence3
.3 sources
Operation AI Comply Initiative
Operation AI Comply is a broader initiative launched by the Federal Trade Commission (FTC) to combat deceptive AI claims and fraudulent schemes. As part of this operation, the FTC has taken action against five companies, including DoNotPay, for allegedly misleading consumers about AI-powered services
1
2
. The initiative stems from advisories issued in February 2023, cautioning businesses against overstating AI capabilities without substantial evidence3
.
Key aspects of Operation AI Comply include:
- Targeting companies that use AI hype to lure consumers into deceptive schemes
- Addressing unfair or misleading practices in AI-related sectors
- Enforcing existing laws against AI-driven fraud and deception
- Protecting honest businesses and innovators while safeguarding consumers
- Sending a clear message that there are no exemptions for AI from established legal frameworks42
4
.4 sources
Related
What other companies are involved in the Operation AI Comply initiative
How did the FTC determine which AI claims were misleading
What are the main reasons behind the FTC's crackdown on AI claims
How effective has the FTC been in enforcing similar actions in the past
What measures can consumers take to avoid falling victim to deceptive AI services
Keep Reading
San Francisco Sues Deepfake Porn Sites
San Francisco City Attorney David Chiu has launched a groundbreaking lawsuit against 16 websites that create and distribute AI-generated deepfake pornography, marking a significant legal challenge to the misuse of artificial intelligence technology. As reported by the Los Angeles Times and KQED, the suit aims to shut down these sites and combat the nonconsensual creation of explicit images of women and children, addressing growing concerns about privacy, exploitation, and the rapid advancement...
26,627
FTC Bans AI-Generated Reviews
The Federal Trade Commission (FTC) has taken a significant step to combat deceptive online practices by banning fake and AI-generated reviews, as reported by multiple sources. This new rule, aimed at protecting consumers and promoting fair competition, prohibits businesses from creating, purchasing, or disseminating misleading reviews, including those generated by artificial intelligence.
25,143
California AI Deepfake Law Blocked
A federal judge has blocked California's new law targeting AI-generated election deepfakes, just weeks after it was signed by Governor Gavin Newsom, citing First Amendment concerns and potential overreach in regulating political speech. The ruling comes in response to a lawsuit filed by a content creator who posted a satirical AI-generated video of Vice President Kamala Harris, which was later reposted by Elon Musk, sparking a public dispute with Governor Newsom.
13,602
Downey's AI Replica Lawsuit
Robert Downey Jr. has taken a firm stance against the potential use of artificial intelligence to recreate his likeness, vowing to pursue legal action against any executives who attempt to do so, even after his death. As reported by IGN, the actor's comments came during a recent podcast appearance where he discussed the growing concerns surrounding AI technology in the entertainment industry.
7,091