On Wednesday, the Federal Trade Commission (FTC) announced a series of enforcement actions targeting deceptive business practices involving artificial intelligence (AI). This initiative, dubbed Operation AI Comply, aims to address misleading AI claims that harm consumers. Among the five newly disclosed cases is one against DoNotPay, a company that marketed an “AI Lawyer” service.
Of course, when one hears the terms “robot lawyer” or “AI Lawyer” the jokes are sure to follow. However, the unfair and deceptive use of AI to strengthen the ability to deceive, is no laughing matter.
Background:
DoNotPay offers consumers a “robot lawyer” service that helps users contest parking tickets, generate legal documents, and handle small claims among other tasks. It also helps in cancelling subscriptions and renewable offers, negotiating bills and consumer privacy protection among other “lawyer” type clams.
FTC Claim.
The FTC recently found that DoNotPay falsely advertised its AI Lawyer. Specifically, DoNotPay claimed that the AI Lawyer could generate valid legal documents allowing consumers to sue without actual human legal representation. The company did not conduct adequate testing to determine if the AI output was in fact the same as a human lawyer and lacked sufficient legal professionals on staff. The FTC found that DoNotPay’s misleading advertising violated Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices in commerce. DoNotPay has agreed to a proposed order requiring it to pay $193,000 and notify consumers about the limitations of its service.
AI is No Excuse.
Using AI does not exempt the user from existing laws including all of the FTC regs on false and deceptive practices. Section 5 of the FTC Act, prohibits “unfair or deceptive acts or practices in or affecting commerce”. This broad mandate allows the FTC to address a wide range of consumer protection issues, including those related to AI.
- Deceptive Claims: Businesses must have a reasonable basis for any claims they make about their products or services. This includes substantiating claims with evidence, especially when it comes to new technologies like AI.
- Transparency and Fairness: The FTC’s rules require businesses to be transparent about their practices and ensure that their marketing is not misleading. This includes avoiding false endorsements, manipulated reviews, and unsubstantiated performance claims.
- Consumer Protection: The FTC’s enforcement actions aim to protect consumers from being misled by false promises and to ensure that they can make informed decisions based on accurate information.
Why This Matters.
First, the obvious – if something sounds too good to be true (e.g.: a robot lawyer), it most likely is. Second, AI is still an emerging technology and should not be used as a blanket substitute for professional expertise. Third, using AI will not exempt or excuse you from compliance with a host of laws, regulations, and rules. Consult with a human attorney to make sure you comply.