The Federal Trade Commission took action against several companies it accused of making deceptive AI claims to consumers, the agency announced. The five targets of the law enforcement sweep — dubbed “Operation AI Comply” — include multiple companies that promised to use AI to help consumers build passive income-generating online storefronts.
Also targeted was DoNotPay, a company that made headlines last year when it tried to get a defendant to use its service — hooked up via wireless headphones and smart glasses — to fight a traffic ticket in court. The FTC accused the company of misleading consumers with its claim to offer “the world’s first robot lawyer.” The company agreed to pay nearly $193,000 to settle the case.
Misleading AI claims have been on the FTC’s radar for some time — as we covered last year, the agency warned companies to “keep [their] AI claims in check” and outlined the types of deceptive marketing practices it was on the lookout for. FTC Chair Lina Khan continues to cite AI as one of the areas her agency is watching most closely, so it wouldn’t be surprising to see similar crackdowns take place in the future.
This newsletter excerpt is from the October 17, 2024, edition of policy.ai — CSET’s newsletter on artificial intelligence, emerging technology, and security policy, written by Alex Friedland. Other stories from this edition include:
- Governor Newsom Vetoes Sweeping AI Regulation, SB 1047
- OpenAI Raises $6.6 Billion — But Departures Point to Difficult Transition
- Tech Giants Tap Nuclear Power for Their AI Data Centers
- Commerce Considering Country-Specific Chip Export Caps
- DOD Announces Replicator 2 — Counter-Drone Defenses the Focus
- OMB Issues Guidance on Responsible AI Acquisition
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