DoNotPay ‘robotic lawyer’ fined $193K by the FTC for not being a lawyer

The Federal Commerce Fee is taking in opposition to DoNotPay, alleging that the AI-powered firm billing itself as “the world’s first robotic lawyer” did not again its claims that it might substitute human authorized illustration. The company’s argues that DoNotPay didn’t conduct assessments to evaluate whether or not its AI chatbot was equal to a human lawyer, and that the corporate didn’t rent or retain any attorneys of its personal. DoNotPay has agreed to a proposed settlement that might see it face fines of $193,000. As well as, the settlement would require DoNotPay to tell prospects who subscribed to its service between 2021 and 2023 in regards to the limitations of its choices.

This proposed settlement is a part of an FTC program referred to as Operation AI Comply, which is focusing on companies that leverage synthetic intelligence to make misleading claims. “Utilizing AI instruments to trick, mislead, or defraud folks is against the law,” FTC Chair Lina M. Khan stated. “The FTC’s enforcement actions clarify that there isn’t any AI exemption from the legal guidelines on the books. By cracking down on unfair or misleading practices in these markets, FTC is making certain that sincere companies and innovators can get a good shot and customers are being protected.”

Along with promising authorized providers, DoNotPay additionally claimed it might get accounts . The corporate its first try to make use of its AI chatbot in a court docket setting in 2023 after a number of state bar associations intervened within the case.