The FTC is clamping down on dishonest practices by companies exploiting AI, demonstrating that misleading consumers with AI tools is illegal and enforceable under existing laws.
"Using AI tools to trick, mislead, or defraud people is illegal," said FTC Chair Lina M. Khan, emphasizing the agency’s commitment to uphold consumer protection laws against AI misuse.
Firms are exploiting the hype around AI to lure consumers into bogus schemes, using AI power to amplify deception and unfair practices in the marketplace.
DoNotPay, marketed as the first robot lawyer, has faced scrutiny for overpromising its capabilities, raising questions about the accountability and regulation of AI services.
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