Federal Trade Commission Chair Lina Khan said, "Using AI tools to trick, mislead, or defraud people is illegal."

If a product or service is marketed as AI-driven, it must deliver clear and measurable benefits rather than vague promises.

DoNotPay, a company that claimed to offer the “world’s first robot lawyer,” has agreed to a $193,000 settlement with the Federal Trade Commission, the agency announced on Tuesday. The move is a part of Operation AI Comply, a new law enforcement effort from the FTC to crack down on companies that use AI services to deceive or defraud customers.

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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.

The Federal Trade Commission is taking action against companies it says have used artificial intelligence to deceive the public.

DoNotPay, the company that touted itself as the creator of the "world's first robot lawyer," has settled with the Federal Trade Commission (FTC) for $193,000.

Five companies are charged with using AI in unfair or misleading ways. One paid a $193,000 fine, and three closed their doors.

The U.S. Federal Trade Commission (FTC) has announced it is taking action against multiple companies that have relied on AI… Continue reading FTC targets DoNotPay and others for using AI for ‘deceptive practices’ in major crackdown The post FTC targets DoNotPay and others for using AI for ‘deceptive practices’ in major crackdown appeared first on ReadWrite.