Link: ‘Robot lawyer’ company faces $193,000 fine as part of FTC’s AI crackdown

DoNotPay, claiming to be the "world's first robot lawyer," has settled for $193,000 with the FTC under its new Operation AI Comply initiative. This crackdown targets AI companies misleading customers.

The FTC argued that DoNotPay boasted it could replace human lawyers with AI without sufficient testing. Claims included handling assaults and checking legal compliance merely from an email address.

The service purportedly saved businesses significant legal fees, yet the FTC found these claims untested and ineffective. DoNotPay has not only paid the fine but must also inform past subscribers about the limitations of its AI legal advice.

Furthermore, the FTC's broader actions include suing companies like Rytr, who allegedly helped create AI-generated fake reviews. A new rule will penalize such behaviors with severe fines.

Another lawsuit targets Ascend Ecom, accused of deceiving consumers into believing they could earn significant income through AI-powered stores on platforms such as Amazon. The FTC's initiatives underscore that AI companies are not exempt from legal standards.

FTC Chair Lina M. Khan emphasized that using AI to deceive is illegal and these measures aim to protect consumers and support honest businesses. This vigorous enforcement helps maintain fair competition and consumer trust in the market. #

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.