Operation AI Comply has come out swinging against five companies the FTC says are peddling 'deceptive AI claims and schemes'

SoftwareAIOperation AI Comply has come out swinging against five companies the FTC says are peddling ‘deceptive AI claims and schemes’When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

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The internet is awash with companies using the “magic-in-a-box” nature of AI to hype their often-dubious products, and it seems like the Federal Trade Commission is finally taking action. The US government consumer protection agency has announcedOperation AI Complyto combat “operations that use AI hype or sell AI technology that can be used in deceptive and unfair ways,” kicking things off with five companies that it reckons have fallen foul of existing consumer protection laws.

Top of the list is DoNotPay, anAI legal assistantthat the FTC says did not deliver on its promises to “sue for assault with a lawyer” and “replace the $200-billion-dollar legal industry with artificial intelligence.” The complaint alleges that DoNotPay offered a service that it claimed would check a small business website for “hundreds of federal and state law violations”, which the FTC says was not effective, along with allegations of a lack of testing to determine if the output was equal to the level of a human lawyer.

DoNotPay has reportedly agreed to a settlement requiring it to pay $193,000 in fines, along with providing a notice to consumers who made use of the AI features between 2021 and 2023 warning them of the limitations of its service.

Also on the list is Ecommerce Empire Builders—a name that seems like it should set off sirens and tip a bucket of water over your head at its mere mention—Rytr, an AI writing assistant that allegedly writesdeceiving reviews, and FBA Machine, “a business opportunity scheme that allegedly falsely promised consumers that they would make guaranteed income through online storefronts that utilized AI-powered software.”

Well, good. While plenty of companies have been happy to bolt AI features onto their products and services to ride the AI hype train, they’re still required to not mislead the consumer with what they can actually achieve—and it seems like the FTC are going after some particularly egregious-looking examples to start off with.

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Of course, there are some legitimate uses for AI that are already active in the real-world andpotentially doing some good. But snake-oil salesmen will always jump on the latest fad to make a quick buck, and we can only hope that, through continued action like this, many might finally be held to account for their ill-gotten gains.

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