The Federal Trade Commission receives v. DoNotPay, which claimed that the AI-powered company, which bills itself as “the world’s first robot lawyer,” does not support its claims that it can replace human legal representation. of the agency It claims that DoNotPay has not conducted tests to assess whether its AI chatbot is equivalent to a human lawyer, and that the company does not employ or retain any lawyers. DoNotPay agreed to a proposed settlement in which it would face a $193,000 fine. In addition, the settlement will require DoNotPay to inform customers who subscribe to its service between 2021 and 2023 about the limitations of its offer.
This proposed solution is part of an FTC program called Operation AI Comply, which targets businesses that use artificial intelligence to make deceptive claims. “Using artificial intelligence tools to deceive, confuse, or deceive people is illegal,” FTC Chairwoman Lina M. Khan said in a statement. “The FTC’s enforcement actions make it clear that there are no AI exemptions from laws on the books. By cracking down on unfair or deceptive practices in these markets, the FTC is ensuring that honest businesses and innovators have a fair chance and that consumers are protected.”
In addition to promising legal services, DoNotPay also claimed to be able to acquire accounts . company In 2023, it was the first attempt to use an AI chatbot in a court setting after many state bar associations got involved.
