A US startup that developed a robot lawyer is facing significant financial penalties after the Federal Trade Commission (FTC) found it had engaged in deceptive advertising practices.
The company, known as DoNotPay, offered its “Robot Lawyer” service to help consumers dispute parking tickets and other issues. However, the FTC alleged that the company made false claims about the success of its robot lawyer tool.
According to the FTC, DoNotPay falsely told customers that their cases were more likely to be won than they actually were. The agency also claimed that the company’s ads misleadingly suggested that the robot lawyer was capable of handling all types of disputes.
As a result, the FTC ordered DoNotPay to pay $193,000 in fines and penalties. This is one of the first times a company has been held liable for making false claims about its use of AI-powered technology.
The case highlights the importance of transparency and honesty in advertising, particularly when it comes to emerging technologies like AI and automation.