The Federal Trade Commission has recently taken action against one of the earliest AI firms, DoNotPay, originally marketed as “the world’s first robot lawyer” capable of “suing anyone with just a click.” This AI company was said to allow users to file lawsuits easily, but it has come under scrutiny for misleading claims.
This Wednesday, the FTC disclosed that it intervened to halt DoNotPay from continuing to issue deceptive statements after discovering the company had not conducted any tests to compare its AI chatbot’s responses to those of a human lawyer. Furthermore, DoNotPay had not employed any legal professionals to assess the accuracy of the AI’s outputs or to confirm the validity of its legal assertions.
Although DoNotPay did not accept responsibility, it agreed to settle the allegations of violating the FTC Act by paying $193,000, pending the approval of the FTC’s consent agreement after a 30-day period for public commentary. The company also committed to notifying “consumers who subscribed to the service from 2021 to 2023” about the “restrictions of the law-related features of the service,” according to the FTC.
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Under the terms of the settlement, going forward, DoNotPay will be barred from falsely claiming that its features could replace professional services.
A representative from DoNotPay informed Ars that the firm “is happy to have constructively worked with the FTC to settle this...
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