The Federal Trade Commission is taking action against DoNotPay, alleging that the AI-powered company failed to back its claims that it could replace human legal representation. The FTC argues that DoNotPay did not conduct tests to assess whether its AI chatbot was equivalent to a human lawyer, and that the company did not hire or retain any attorneys of its own. This failure to provide adequate verification of their claims raised significant concerns about misleading consumers.
"Using AI tools to trick, mislead, or defraud people is illegal," FTC Chair Lina M. Khan said. "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, FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected." This emphasizes the FTC's commitment to regulating AI practices appropriately.
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