DoNotPay, an artificial intelligence company known for helping users cancel unwanted subscriptions and fight parking tickets, has reached a settlement with the FTC over an artificial intelligence chatbot it billed as “the world’s first robo-lawyer.” According to the FTC, AI lawyers did not live up to their claims and DoNotPay never properly tested the chatbot tool. In fact, the company reportedly never even hired real human lawyers to develop the product.
DoNotPay has agreed to pay $193,000 and will be required to send notices to any previous clients who used AI Lawyers between 2021 and 2023 warning of the limitations of the subscription service. The settlement will also “prohibit the company from making claims without evidence to support its ability to substitute any professional services,” according to a statement from the FTC on Wednesday.
AI lawyers market themselves as a tool that can be used for things like prosecuting assaults in small claims court and drafting cease-and-desist letters. The AI tool also created legal documents such as confidentiality agreements, business contracts, prenuptial agreements and custody agreements, according to the FTC. DoNotPay initially planned to use artificial intelligence lawyers in physical courtrooms, but halted the plan in early 2023 after receiving threats from state bar associations.
The FTC’s complaint, which can be read online, is filled with some pretty bizarre details, including a quote that appears on DoNotPay’s website, purportedly from the Los Angeles Times: “It’s strikingly similar to what this robot lawyer can do — If that were all – what human lawyers do, in fact, this quote comes from the Los Angeles Times. High School Insider According to the Federal Trade Commission, the site is a user-generated content platform targeted at high school students.
The tool also wasn’t tested in the way any reasonable person might expect, according to the FTC complaint:
DoNotPay staff have not tested the quality and accuracy of the legal documents and advice generated by most legal-related features of the Service. DoNotPay has not engaged an attorney or an attorney with relevant legal expertise to test the quality and accuracy of the legally related features of the Service.
Joshua Browder, the founder of the artificial intelligence company, has previously said that DoNotPay hopes to “replace the $200 billion legal industry with artificial intelligence.” Browder dropped out of college in 2018 to participate in the Thiel Fellowship. The program was started by tech investor Peter Thiel to give people money to drop out of college and start a business.
For its part, DoNotPay was quick to point out that it did not admit any liability in its settlement with the FTC.
“DoNotPay is pleased to work constructively with the FTC to resolve this case and fully resolve these issues, but does not admit liability,” the company said in a statement from an unnamed “DoNotPay spokesperson.”
Gizmodo asked about allegations that it didn’t hire a lawyer to review the work of its AI lawyers, but the company didn’t answer those questions in its statement. It is unclear whether the statement was generated by artificial intelligence or written by a human.
“The complaint relates to usage by hundreds of customers (out of millions of people) that dates back several years, long after the services were discontinued,” the statement continued. “DoNotPay has hired former FTC Deputy Director Maneesha Mithal as outside counsel, who Very helpful in handling this matter.”
News of the action against DoNotPay is part of a broader announcement from the Federal Trade Commission on Wednesday that focuses on cracking down on artificial intelligence. FTC Chairwoman Lina Khan said the use of artificial intelligence does not provide any form of exemption from existing laws. despise.
“It is illegal to use artificial intelligence tools to deceive, mislead or deceive people,” Khan said in a statement posted on the agency’s website.
“The FTC’s enforcement action makes clear that artificial intelligence is not immune from the law as written,” Khan continued. “By combating unfair or deceptive practices in these markets, the FTC ensures honest businesses and innovators have a fair chance and protects consumers.”
