A company called “DoNotPay” operated an artificial intelligence service that it called “the world’s first robot lawyer,” which it claimed “would allow consumers to “sue for assault without a lawyer” and “generate perfectly valid legal documents in no time.”
Not surprisingly, the product did not live up to its claims.
In late September, the FTC approved an administrative complaint alleging, among other things, that the company itself did not hire or retain any attorneys or conduct any analysis to compare its products to those drafted by attorneys, and the services it offered were often simply not effective. The Commission also approved a proposed Commission order settling the charges against it, which would require DoNotPay to pay $193,000, provide a warning notice to consumers who had subscribed to the service, and agree not to make claims about its ability to substitute for any professional service without evidence to back it up. The order will be finalized after a public comment period.
The FTC’s statement with links to relevant documents is available here.