DoNotPay's 'Robot Lawyer' Fined $193K by FTC for Practicing Law Without a License

Home AI News DoNotPay's 'Robot Lawyer' Fined $193K by FTC for Practicing Law Without a License

Updated on September 25 2024

The Federal Trade Commission (FTC) is taking action against DoNotPay, which markets itself as "the world's first robot lawyer." The agency's complaint alleges that DoNotPay failed to substantiate its claims of being able to replace human legal representation. The FTC argues that DoNotPay did not conduct adequate tests to evaluate whether its AI chatbot could match the competencies of a human lawyer and failed to employ or retain any licensed attorneys.

As part of a proposed settlement, DoNotPay will face fines totaling $193,000. Furthermore, the settlement stipulates that the company must inform customers who subscribed to its services between 2021 and 2023 about the limitations of its offerings.

This action is part of the FTC's initiative, Operation AI Comply, aimed at businesses that make misleading claims using artificial intelligence. "Using AI tools to trick, mislead, or defraud people is illegal," stated FTC Chair Lina M. Khan. "Our enforcement actions demonstrate that the laws do not provide an exemption for AI. By addressing unfair or deceptive practices, the FTC is working to protect consumers and ensure a level playing field for honest businesses and innovators."

Besides offering legal services, DoNotPay claimed it could assist users in getting their accounts reinstated on social media platforms. However, the company postponed its initial attempt to use its AI chatbot in court in 2023 after intervention from several state bar associations.

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