US FTC announces crackdown on deceptive AI claims, schemes
artificial intelligence in deceptive and unfair ways.
Three of the cases suspended operations at businesses that purported to help consumers generate passive income by opening e-commerce storefronts.
The FTC also settled with a company called DoNotPay over its claim to provide automated legal services, and with Rytr, an AI writing tool that the agency said offered a feature that allows users to generate fake product reviews.
«Using AI tools to trick, mislead, or defraud people is illegal,» FTC Chair Lina M. Khan said in a statement. «The FTC's enforcement actions make clear that there is no AI exemption from the laws on the books.»
DoNotPay agreed to pay $193,000 and give customers who subscribed to its service between 2021 and 2023 notice about the limitations of its legal feature.
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