The Federal Trade Commission is suing DoNotPay, alleging that the AI-powered company calls itself “the world’s first robot lawyer” and doesn’t substantiate its claims that it can replace human lawyers. The commission’s complaint alleges that DoNotPay has not conducted tests to evaluate whether its AI chatbots are comparable to human lawyers and does not hire or employ lawyers in-house. DoNotPay agreed to a settlement that will result in a $193,000 penalty. Additionally, the settlement requires the company to inform customers who subscribed to DoNotPay’s services between 2021 and 2023 about limitations on the company’s services.
The settlement is part of an FTC program called Operation AI Comply, which targets companies that use artificial intelligence to make false claims. “It is illegal to use AI tools to deceive, mislead, or defraud people,” FTC Chairman Lina M. Khan said. “Our enforcement actions make clear that AI is not exempt from current law. By cracking down on unfair or deceptive practices in these markets, the FTC is ensuring that honest companies and innovators have a level playing field and consumers are protected.”
In addition to promising legal services, DoNotPay also claimed it could unban accounts from social media platforms. The company delayed its first attempt to use an AI chatbot in court until 2023 after several state bar associations intervened in the case.
