United States of America: Federal Trade Commission required Workado to provide information to demonstrate its AI detection claims as part of settlement agreement

On 28 April 2025, the Federal Trade Commission (FTC) issued a proposed order as part of a settlement agreement requiring Workado, LLC to verify claims regarding the accuracy of its Artificial Intelligence (AI) Content Detector tool. Allegations suggested that Workado’s assertion of 98% accuracy in identifying AI-generated text was misleading. The order mandates that Workado refrain from advertising AI detection efficacy without substantial evidence to support such claims. Additionally, Workado must retain evidence backing these claims and notify affected consumers of the Commission’s settlement. The company is also required to submit annual compliance reports to the FTC over a three-year oversight period. Following a 30-day public commentary phase in the Federal Register, the finalisation of the consent package will depend on the feedback received.