United States of America: Opened consultation on interim consent order in FTC investigation into DoNotPay for alleged misrepresentation of AI legal services

Description

Opened consultation on interim consent order in FTC investigation into DoNotPay for alleged misrepresentation of AI legal services

On 30 September 2024, the Federal Trade Commission opened a public consultation on the interim consent order with DoNotPay for alleged misrepresentation of AI legal services, until 30 October 2024. The order prohibits DoNotPay from making misleading and unsubstantiated representations regarding the functionality and performance of its services, particularly claims that its product operates like a human lawyer or can analyse legal situations with expertise. Additionally, DoNotPay is required to pay USD 193'000 to the FTC as monetary relief within 30 days. The order further mandates that DoNotPay identify and notify all eligible customers who subscribed to the service between 1 January 2021 to 31 December 2023 on the limitations of law-related features on the service within 180 days of the order's issuance.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
ML and AI development, other service provider
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

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2024-09-25
under deliberation

On 25 September 2024, the Federal Trade Commission announced its investigation into DoNotPay, a com…

2024-09-25
under investigation

On 25 September 2024, the Federal Trade Commission released an interim consent order with DoNotPay,…

2024-09-30
in consultation

On 30 September 2024, the Federal Trade Commission opened a public consultation on the interim cons…

2024-10-30
processing consultation

On 30 October 2024, the Federal Trade Commission closes the public consultation on the interim cons…