FTC v. DoNotPay: 'Robot Lawyer' AI Claims Without Evidence

Summary

DoNotPay marketed itself as "the world's first robot lawyer," claiming its AI could help consumers fight corporations, protect privacy, and handle legal matters as well as a human attorney. The FTC found these claims were not substantiated — the AI had not been tested against human lawyers, and the company lacked evidence that the AI could perform the legal tasks it claimed.

Details

• Violation: Unsubstantiated AI legal capability claims
• Penalty: $193,000 settlement
• Framework: FTC Act Section 5
• Status: Settled (August 2024)

Key Takeaways

1. AI cannot be marketed as performing professional services without evidence
2. "Robot lawyer" claims require testing against actual human professionals
3. Companies must provide refunds to consumers who signed up based on AI capability marketing
4. Legal AI tools face the same substantiation requirements as other professional service claims

Injunctive Relief

DoNotPay is prohibited from making claims about AI legal capabilities without competent and reliable evidence substantiating the claim, and must provide refunds to subscribers who signed up based on the AI's legal capability marketing.