FTC press releases or official announcements

FTC Launches Operation AI Comply Targeting Five Companies for Deceptive AI Claims, $193,000 Fine

Sep 25, 2024, 05:32 PM

The Federal Trade Commission (FTC) has launched 'Operation AI Comply,' targeting deceptive AI claims and schemes with five law enforcement actions. The FTC is taking action against five companies accused of using artificial intelligence in misleading and unfair ways. Among these companies is DoNotPay, which marketed itself as the 'world's first robot lawyer' but failed to deliver on its promises. DoNotPay has agreed to a $193,000 settlement with the FTC. Another company involved is AI writing tool Rytr. FTC Chair Lina M. Khan stated that the crackdown aims to ensure that AI-powered products and services provide clear and measurable benefits rather than vague promises.