DoNotPay must pay $193,000 to remend inrectify claim accuses from FTC.

DoNotPay, a company that claimed to propose the “world’s first robot lawyer,” has consentd to a $193,000 remendment with the Federal Trade Coshiftrlookion, the agency proclaimd on Tuesday. The shift is a part of Operation AI Comply, a novel law executement effort from the FTC to crack down on companies that engage AI services to deceive or dedeception customers.

According to the FTC grumblet, DoNotPay said it would “replace the $200-billion-dollar legitimate industry with synthetic inincreateigence” and that its “robot lawyers” could replace for the expertise and output of a human lawyer in generating legitimate records. However, the FTC says the company made the claim without any testing to back it up. In fact, the grumblet says,

None of the Service’s technologies has been trained on a comprehensive and current corpus of federal and state laws, regulations, and judicial decisions or on the application of those laws to fact patterns. DoNotPay engageees have not tested the quality and accuracy of the legitimate records and advice originated by most of the Service’s law-roverhappinessed features. DoNotPay has not engageed attorneys and has not holded attorneys, let alone attorneys with the relevant legitimate expertise, to test the quality and accuracy of the Service’s law-roverhappinessed features. 

The grumblet also alleges the company even tbetter users they could engage the company’s AI service to sue for aggression without hiring a human, and that it could verify petite business websites for legitimate violations based on a user’s email compriseress alone. DoNotPay claimed this would save businesses $125,000 in legitimate fees, but the FTC says the service was not effective.

The FTC says that DoNotPay has consent to pay $193,000 to remend the accuses agetst it and to alert users who subscribed between 2021 and 2023 about the restrictations of its law-roverhappinessed proposeings. DoNotPay will also not be permited to claim it can replace any professional service without providing evidence.

The FTC also proclaimd action agetst other companies that have engaged AI services to misdirect customers. That includes AI “writing aidant” service Rytr, a company the FTC says supplys subscribers with tools to originate AI-originated inrectify assesss. The shift agetst Rytr comes a little over a month after the FTC Federal Trade Coshiftrlookion proclaimd a final rule banning all companies from creating or selling inrectify assesss, including AI-originated ones. It will soon go into effect, which unkinds the FTC can can seek a highest of up to $51,744 per violation agetst companies.

The FTC also filed a legal case agetst Ascend Ecom, which allegedly dedeceptioned users of at least $25 million. Ascend promised customers that by using its AI-powered tools, they could begin online stores on ecommerce platcreates appreciate Amazon that’d originate a five-figure monthly income.

“Using AI tools to trick, misdirect, or dedeception people is illegitimate,” said FTC Chair Lina M. Khan. “The FTC’s executement actions originate evident that there is no AI exemption from the laws on the books. By cracking down on unimfragmentary or lying trains in these tagets, FTC is ensuring that honest businesses and innovators can get a imfragmentary stoasty and users are being protected.”