DoNotPay, which advertised that it had developed the world’s first artificial intelligence (AI) lawyer, was fined for fraudulent promoting. This follows a crackdown by U.S. regulators on corporations that use or sell AI technology in deceptive and unfair ways.
Reuters reported on the twenty fifth (local time) that the U.S. Federal Trade Commission (FTC) announced crackdowns on five corporations, including Do Not Pay, on charges of misleading consumers by promoting AI technology in a deceptive and unfair manner.
“It’s illegal to make use of AI tools to deceive, mislead, or defraud people,” said FTC Chairman Lina Khan. “The FTC’s enforcement actions make it clear that AI can’t be exempt from the law.”
False claims related to AI have grow to be increasingly common within the marketplace as corporations capitalize on the hype around latest technologies, prompting regulators to crack down. It is because the products and exaggerated promoting of those corporations are judged to be detrimental to fair market competition.
DoNotPay became famous in February last yr when it advertised that it planned to try the world’s first AI defense in a California court. Nonetheless, it was withdrawn as a result of pressure from the state bar association.
The FTC also argued that this was exaggeration. Even though it was advertised that AI could file a criticism with no lawyer and generate ready-to-use legal documents, it didn’t confirm whether the outcomes of the AI service were such as the extent of an actual lawyer.
Do Not Pay didn’t admit fault on this regard, citing reasons corresponding to the incontrovertible fact that the service was discontinued a protracted time ago. Nonetheless, it agreed with the FTC to pay a wonderful of $93,000 (about 260 million won) and supply notices about the restrictions of legal service functions to service subscribers from 2021 to 2023.
The FTC said it will “prohibit claims that it’s an alternative choice to skilled services without supporting evidence.”
Rytr, one other company targeted by the lawsuit, provides an AI service that writes customer reviews for you. The FTC said that Author’s AI service “generated specific and detailed reviews with only limited input from users,” and that “it contained a considerable amount of false information that might deceive and mislead potential consumers the reviews to make product purchase decisions.” He said. In response to the agreement, the corporate plans to discontinue its review ghostwriting service.
The remaining three are Ascend Ecom, E-Commerce Empire Builder (EEB), and FBA Machine, corporations that claim AI can assist generate income through online stores. The FTC said they suspended business operations while the federal court case was pending.
Reporter Park Chan cpark@aitimes.com
