United States of America: Federal Trade Commission opened consultation on proposed consent order to Workado to provide information to demonstrate its AI detection claims

On 2 May 2025, the Federal Trade Commission (FTC) opened a consultation, set to close on 2 June 2025, on a proposed consent order settling allegations that Workado, LLC made false or unsubstantiated claims about the accuracy of its AI text detection product. The proposed order, accepted by the Commission on 29 April 2025 and published in the Federal Register on 2 May 2025, forms part of a settlement requiring Workado to substantiate any claims about the performance of its AI Content Detector. The FTC alleged that Workado’s representation of 98% accuracy in detecting AI-generated text was unsupported and misleading. Under the proposed order, Workado must refrain from making efficacy claims without competent and reliable evidence, retain substantiating material, and notify eligible customers of the settlement. The company must also submit compliance reports for up to 3 years and maintain relevant records for 10 years.