The Federal Trade Commission (FTC) has initiated legal proceedings against DoNotPay, an AI-powered firm that promotes itself as “the world’s first robot lawyer.” The FTC alleges that the company did not substantiate its claims of being able to replace human legal representation. According to the agency’s complaint, DoNotPay failed to conduct tests to verify whether its AI chatbot was on par with a human lawyer and did not employ any attorneys.
As part of a proposed settlement, DoNotPay has agreed to pay fines totaling $193,000. Additionally, the company will be required to inform customers who subscribed to its service between 2021 and 2023 about the limitations of its offerings.
This proposed settlement is under an FTC initiative called Operation AI Comply, aimed at targeting businesses that use artificial intelligence to make deceptive claims. FTC Chair Lina M. Khan emphasized that the use of AI to deceive or defraud people is illegal. She stated, “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books. By cracking down on unfair or deceptive practices in these markets, the FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected.”
Beyond its legal services claims, DoNotPay also purported to have the capability to get accounts unbanned from social media platforms. The company postponed its first attempt to use its AI chatbot in a court setting in 2023 after several state bar associations intervened.