The Federal Trade Commission is taking action ai-claims-schemes” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:action;elm:context_link;elmt:doNotAffiliate;cpos:1;pos:1;itc:0;sec:content-canvas”> against DoNotPay, alleging that the ai-powered company that bills itself as “the world's first robot lawyer” failed to back up its claims that it could replace human legal representation. DoNotPay maintains that it did not conduct tests to assess whether its ai chatbot was equivalent to a human lawyer and that the company did not hire or retain any of its own attorneys. DoNotPay agreed to a proposed settlement that would require it to face $193,000 in fines. Additionally, the settlement will require DoNotPay to inform customers who subscribed to its service between 2021 and 2023 about the limitations of its offerings.
This proposed settlement is part of an FTC program called Operation ai Comply, which targets companies that use artificial intelligence to make misleading claims. “Using ai tools to deceive, mislead, or defraud people is illegal,” said FTC Chairwoman Lina M. Khan. “The FTC’s enforcement actions make clear that there is no exemption for artificial intelligence from existing laws. By cracking down on unfair or deceptive practices in these markets, the FTC is ensuring that honest companies and innovators can have a fair chance and that consumers are protected.”
In addition to promising legal services, DoNotPay also claimed it could acquire accounts. The company first attempted to use its ai chatbot in court in 2023, after several state bar associations weighed in on the case.
