FTC steps up fight against fake AI promises and scams

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What you need to know

• The FTC has taken legal action against companies that make false AI claims or offer easily exploitable technology.

• Its new initiative, Operation AI Comply, has uncovered five cases of AI being used for questionable practices, including a “robot lawyer,” fake reviews and sketchy online storefronts.

• DoNotPay, for example, is under fire for claiming to have the “world’s first robot lawyer” who can sue anyone with a click.

The Federal Trade Commission is cracking down on deceptive artificial intelligence practices and taking legal action against companies that engage in these practices. false artificial intelligence claims or provide technology that can be easily misused for fraudulent purposes.

The FTC’s new program, Operation AI Comply, out in the open Here are five cases where companies used AI to amplify deceptive practices. These include the so-called “robot lawyer,” fake AI-generated reviews, and questionable online storefronts.

One of these cases involves DoNotPay, which claims to have the “world’s first robot lawyer” that can sue anyone with one click. Now the FTC is investigating the company for not living up to its promises.

DoNotPay offered services such as using virtual cards to avoid free trial fees and filing complaints against businesses. But the FTC claims users overstate their capabilities by saying things like they can “file assault lawsuits without a lawyer” and quickly create valid legal documents.

The FTC has called out DoNotPay for making baseless claims that ‘robot lawyers’ could replace human lawyers in creating legal documents. DoNotPay claimed that it would “replace the $200 billion legal industry with artificial intelligence.”

However, the FTC argues that DoNotPay has no evidence to support these claims. As a result, the company agreed to a $193,000 settlement with the FTC.

The FTC is also going after companies that claim artificial intelligence can help people profit from online storefronts. One of these cases involves Ascend Ecom, which supposedly misled individuals about their earning potential, encouraging them to invest in “risk-free” AI-driven business opportunities. The FTC alleges that Ascend Ecom failed to honor its money-back guarantees when these investments did not pay off.

In addition to the companies mentioned, Ecommerce Empire Builders, Rytr and FBA Machine are also being investigated by the FTC. The complaint against Rytr reveals that subscribers can use its AI platform to create misleading fake reviews full of misinformation that can mislead consumers. Some users created thousands of these questionable comments.

Meanwhile, Ecommerce Empire Builders and FBA Machine suggest that customers can make money by investing in AI-powered online businesses. But the FTC alleges that Ecommerce Empire Builders forced customers to sign contracts that prevented them from leaving negative reviews.