FTC v. DoNotPay — 'AI Lawyer' False-Claims Settlement
FTC · In re DoNotPay, Inc., FTC No. C-4796 (Sept. 25, 2024)
The FTC settled with 'AI lawyer' DoNotPay in September 2024 over claims the company falsely marketed an AI chatbot as a substitute for a human lawyer, without ever testing whether its outputs matched a competent attorney's work. Part of the FTC's 'Operation AI Comply' sweep.
Technical detail
In re DoNotPay, Inc., No. C-4796 (FTC, consent order Sept. 25, 2024). FTC Act § 5 deception. $193,000 monetary relief to consumers; conduct relief: cease AI-lawyer substitution claims absent substantiation; notify past subscribers about the limitations of the service.
Who is protected: Consumers misled by AI-as-professional-substitute marketing
Who must comply: DoNotPay, Inc. and similarly situated AI service marketers
Key facts
| Jurisdiction | FTC |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2024-09-25 |
| Citation | In re DoNotPay, Inc., FTC No. C-4796 (Sept. 25, 2024) |
| Topics | consumer protection · AI disclosure and transparency · automated decision-making |
| Last verified | 2026-06-17 |
| Official source | FTC Announces Crackdown on Deceptive AI Claims and Schemes — FTC press release (Operation AI Comply) ↗ |
More AI rules in FTC
- FTC v. Rite Aid · In effect
- FTC v. Amazon (Ring) · In effect
- FTC v. Amazon (Alexa) · In effect
- FTC v. NGL Labs · In effect
- FTC v. Rytr · In effect
- FTC Operation AI Comply (Sept. 2024) · In effect
Related consumer protection rules elsewhere
- FTC Act Section 5 (unfair/deceptive AI) · In effect
- TAKE IT DOWN Act · In effect
- FCRA (AI in credit & background checks) · In effect
- ECOA / Regulation B (AI credit discrimination) · In effect
- COPPA + 2025 Rule (childrens data) · In effect
- TCPA (AI voice calls) · In effect
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