tech
December 23, 2025
‘Robot lawyer’ company faces $193,000 fine as part of FTC’s AI crackdown
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TL;DR
- DoNotPay agreed to a $193,000 settlement with the FTC for allegedly making unsubstantiated claims about its AI "robot lawyer" services.
- The FTC complaint states DoNotPay's AI legal services were not trained on comprehensive legal data and were not adequately tested for accuracy.
- DoNotPay is required to warn consumers about the limitations of its law-related offerings and cannot claim to replace professional services without evidence.
- The FTC also took action against Rytr, an AI writing assistant accused of generating fake reviews, and Ascend Ecom, which allegedly defrauded consumers with promises of AI-driven e-commerce profits.
- FTC Chair Lina M. Khan stated that using AI to deceive or defraud is illegal and that there is no AI exemption from existing laws.
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