The Federal Trade Commission settled a case against AI-lawyer company DoNotPay over allegations it deceived customers about its services, the agency announced Wednesday. It also disclosed it’s launched lawsuits against four other AI companies over their offerings.
The sweep, called Operation AI Comply by the agency, follows guidance from February 2023 warning companies to not hype AI products whose claims they couldn’t back up.
DoNotPay made promises to customers that its products could replace a human lawyer and “generate perfectly valid legal documents in no time,” according to the FTC’s complaint. However, it said, the company never tested these ...
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