United States of America: Federal Trade Commission public lawsuit against Cleo AI for deceptive advertising and subscription practices

Progress

Current status
under investigation
27 Mar 2025 under investigation

Scope

Implementers
United States of America
Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
ML and AI development
Government Branch
judiciary
Government Body
court
Implementation Level
national

Timeline of events

27 Mar 2025
under investigation

Federal Trade Commission and Cleo AI reached settlement order in lawsuit for deceptive advertising and subscription practices

On 27 March 2025, the Federal Trade Commission (FTC) filed a stipulated settlement order with Cleo AI, Inc. in the US District Court for the Southern District of New York. The order resolved allegations that Cleo AI had misrepresented the availabili…

Source
Event type public lawsuit
Action type interim ruling
Government branch judiciary
Government body court