DoNotPay, a company that claimed to offer the “world’s first robot lawyer,” has agreed to a $193,000 settlement with the Federal Trade Commission, the agency announced on Tuesday. The move is a part of Operation AI Comply, a new law enforcement effort from the FTC to crack down on companies that use AI services to deceive or defraud customers.
According to the FTC complaint, DoNotPay said it would “replace the $200-billion-dollar legal industry with artificial intelligence” and that its “robot lawyers” could substitute for the expertise and output of a human lawyer in generating legal documents. However, the FTC says the company made the claim without any testing to back it up. In fact, the complaint says:
None of the Service’s...
