TBA Law Blog


Posted by: Azya Thornton on Sep 27, 2024

The U.S. Federal Trade Commission (FTC) announced actions against five companies this week, accusing them of using artificial intelligence (AI) in deceptive and unfair ways. Reuters reports that three companies were suspended for falsely claiming to help consumers generate passive income through e-commerce storefronts. Two other companies settled. DoNotPay agreed to pay $193,000 and notify customers about the limitations of its legal services and Rytr, a writing tool, agreed to stop providing review generation services. Both companies denied wrongdoing. The FTC emphasized in a statement that AI tools cannot be used to trick, mislead or defraud consumers.