The Federal Trade Commission has announced a crackdown on DoNotPay, an AI-powered company claiming to be “the world’s first robot lawyer” without evidence to support its assertions of being able to replace human legal representation. The FTC alleges that DoNotPay did not test whether its AI chatbot was as effective as a human lawyer and did not employ any attorneys. As part of a proposed settlement, DoNotPay faces fines of $193,000 and must notify customers of the limitations of its services. This action falls under the FTC’s Operation AI Comply program, targeting businesses using AI for deceptive purposes. Chair Lina M. Khan emphasized that using AI to deceive people is illegal, and enforcement actions aim to protect consumers and support honest businesses. DoNotPay also falsely claimed it could unban social media accounts and experienced setbacks when attempting to use its AI chatbot in a court case after state bar associations intervened.
