WASHINGTON, D.C. — The Federal Trade Commission (FTC) recently finalized an order against DoNotPay, a company that marketed its subscription service as “the world’s first robot lawyer,” citing deceptive claims about the capabilities of its artificial intelligence-based platform. The ruling mandates corrective action by the company, including monetary penalties and further restrictions on its advertising practices.
The case stems from a complaint issued by the FTC in September 2024, which alleged that DoNotPay misrepresented its AI chatbot as a credible alternative to licensed human attorneys. According to the complaint, the company failed to appropriately test the quality and accuracy of the legal documents and advice provided by the chatbot. Furthermore, DoNotPay had not employed legal experts to ensure the platform’s services operated at a level comparable to that of a human lawyer.
The finalized order, approved by a unanimous 5-0 vote from the FTC on January 16, 2025, requires the company to pay $193,000 in monetary relief. In addition, DoNotPay must notify consumers who subscribed to its platform between 2021 and 2023 about the settlement and provide details of the corrective actions being taken.
Moving forward, the FTC order prohibits DoNotPay from making any claims suggesting its service equals or exceeds the performance of a human lawyer unless those claims are backed by credible, comprehensive evidence. This requirement aims to prevent similar deceptive practices and ensure consumers can make informed decisions when selecting legal assistance tools.
The Commission also addressed public concerns during the settlement process, responding to five formal comments before reaching its final decision. The unanimous vote underscores the FTC’s commitment to holding companies accountable for misleading consumers, particularly when their services operate in high-stakes sectors such as legal assistance.
This case serves as a cautionary tale for businesses leveraging artificial intelligence to provide consumer services. It highlights the regulatory scrutiny that AI-based platforms face, particularly when making bold performance claims without demonstrable evidence. As the use of AI continues to grow across industries, the FTC’s order against DoNotPay reinforces the importance of transparency, accuracy, and accountability in the integration of these technologies.
Looking ahead, the outcome of this case is likely to influence how businesses manage and advertise AI-driven consumer services while signaling a strong commitment to consumer protection in this rapidly evolving landscape.
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