'Robot lawyer' a scam, FTC says in major AI crackdown
The cases involved AI-generated fake reviews, "the world's first robot lawyer," and online storefront schemes. The FTC said in a statement that consumers lost tens of millions of dollars, lured by the promise that AI-enabled problem-solving and automation would save them time, money, and, in the e-commerce cases, lead to increased earnings.
‘Robot lawyer’ company faces $193,000 fine as part of FTC’s AI crackdown
DoNotPay will pay $193,000 to settle charges that it misled consumers by claiming its services could draft valid legal documents.
DoNotPay Has to Pay Up Over ‘World’s First Robot Lawyer’
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.
DoNotPay has to pay $193K for falsely touting untested AI lawyer, FTC says
Among the first AI companies that the Federal Trade Commission has exposed as deceiving consumers is DoNotPay—which initially was advertised as "the world's first robot lawyer" with the ability to "sue anyone with the click of a button."
Shocker: A Robot Lawyer Chatbot Isn't as Good as the Real Thing
The FTC cracks down on companies it says are overhyping their AI technologies. That includes robot lawyer service DoNotPay, which will (ironically) be forced to pay a $193,000 fine.
FTC Fines DoNotPay $193,000, Alleging False Claims Over 'Robot Lawyer' Service
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.
DoNotPay 'robot lawyer' fined $193K by the FTC for not being a lawyer
The Federal Trade Commission is taking action against DoNotPay, alleging that the AI-powered company billing itself as "the world's first robot lawyer" failed to back its claims that it could replace human legal representation.
The FTC is stepping up its fight against fake AI promises and scams
Operation AI Comply, the FTC's new program, has uncovered five cases where companies used AI to boost deceptive practices. These include a so-called "robot lawyer," AI-generated fake reviews, and shady online storefronts.
An AI service promised 'the world's first robot lawyer.' The FTC says it was a scam
As part of Operation AI Comply, the Federal Trade Commission (FTC) announced five cases exposing alleged AI-related deception ...
Federal Trade Commission Targets Fraudulent Artificial Intelligence (AI) Businesses In New Initiative
The FTC launches Operation AI Comply to combat deceptive AI practices, targeting companies like DoNotPay and Ascend Ecom for ...
FTC crackdown on DoNotPay and others is warning for all AI-powered companies
If a product or service is marketed as AI-driven, it must deliver clear and measurable benefits rather than vague promises.
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FTC cracks down on misleading AI-powered business schemes in new initiative
The U.S. Federal Trade Commission has announced a crackdown on companies allegedly making deceptive artificial intelligence ...
FTC Cracks Down on Deceptive AI Claims
Five companies are charged with using AI in unfair or misleading ways. One paid a $193,000 fine, and three closed their doors ...