The Federal Trade Commission (FTC) has launched a new enforcement initiative called Operation AI Comply, targeting companies that have used artificial intelligence (AI) to support deceptive products and services.

Federal Trade Commission Chair Lina Khan said, "Using AI tools to trick, mislead, or defraud people is illegal."

If a product or service is marketed as AI-driven, it must deliver clear and measurable benefits rather than vague promises.

DoNotPay, a company that claimed to offer the “world’s first robot lawyer,” has agreed to a $193,000 settlement with the Federal Trade Commission, the agency announced on Tuesday. The move is a part of Operation AI Comply, a new law enforcement effort from the FTC to crack down on companies that use AI services to deceive or defraud customers.

The FTC also requires DoNotPay to provide a notice to consumers who used its service between 2021 and 2023 warning about the limitations of its legal products, and prohibits it from making false claims about its service going forward.

The US Federal Trade Commission (FTC) has brought enforcement actions against several companies for using AI to mislead consumers.

DoNotPay employees have not tested the quality and accuracy of the legal documents and advice generated by most of the Service’s law-related features. DoNotPay has not employed attorneys and has not retained attorneys, let alone attorneys with the relevant legal expertise, to test the quality and accuracy of the Service’s law-related features.