As reported by Engadget, the Federal Trade Commission has initiated legal action against DoNotPay, alleging that the self-proclaimed "world's first robot lawyer" failed to substantiate its assertions of being able to replace human legal representation. The commission's complaint contends that DoNotPay did not conduct evaluations to determine if its AI chatbot was comparable to a human attorney and that the company did not employ or retain any lawyers. DoNotPay has consented to a proposed settlement that includes facing penalties of $193,000. Moreover, the settlement mandates that DoNotPay must disclose the limitations of its services to customers who subscribed between 2021 and 2023.
This proposed settlement is part of the FTC's Operation AI Comply initiative, which is aimed at businesses using artificial intelligence to make misleading claims. FTC Chair Lina M. Khan stated, "Using AI tools to trick, mislead, or defraud people is illegal." She emphasized that the FTC's enforcement actions underscore that there are no exemptions for AI from existing laws, and by combating unfair practices, the FTC is safeguarding honest businesses, innovators, and consumers.
In addition to claiming to provide legal services, DoNotPay also asserted that it could assist in unbanning accounts from social media platforms. The company postponed its initial attempt to use its AI chatbot in a court setting in 2023 following interventions by multiple state bar associations.
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