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

On 2 June 2025, the Federal Trade Commission (FTC) closed its consultation on a proposed consent order settling allegations that Workado, LLC made false or unsubstantiated claims about the accuracy of its AI text detection tool. The proposed order, published in the Federal Register on 2 May 2025, forms part of a settlement agreement requiring Workado to substantiate performance claims related to its AI Content Detector. The FTC alleged that Workado’s claim of 98% accuracy across various AI-generated text types was misleading and unsupported. Under the proposed order, Workado must refrain from advertising the efficacy of its AI detection tools without competent and reliable evidence, retain such substantiating material, and notify affected customers of the settlement. The company must also submit compliance reports for up to 3 years and maintain relevant records for 10 years. The consultation was part of a 30-day public comment period prior to potential final approval of the consent order.