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

The Federal Commerce Fee is taking towards DoNotPay, alleging that the AI-powered firm billing itself as “the world’s first robotic lawyer” didn’t again its claims that it may 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 clients 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 concentrating on companies that leverage synthetic intelligence to make misleading claims. “Utilizing AI instruments to trick, mislead, or defraud folks is illegitimate,” FTC Chair Lina M. Khan stated. “The FTC’s enforcement actions clarify that there is no such thing as a AI exemption from the legal guidelines on the books. By cracking down on unfair or misleading practices in these markets, FTC is guaranteeing that sincere companies and innovators can get a good shot and shoppers are being protected.”

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