The Federal Trade Commission’s actions against companies it said were deceiving customers about the value of their AI tools exemplifies the agency’s efforts to rein in overhyped claims about the technology while also raising questions about its ability to stretch its enforcement powers.
DoNotPay, which offers customers AI-powered legal services, settled with the agency for $193,000 over claims it misled users about how well its AI could replace a real lawyer. The FTC announced the settlement on Sept. 25 as part of its “Operation AI Comply,” which also included investigations of three AI companies that now face court orders halting ...