DoNotPay Settles FTC Charges, Will Warn Consumers About Limitations

The Federal Trade Commission (FTC) announced that DoNotPay has agreed to pay $193,000 to settle charges against the company. The settlement requires DoNotPay to warn consumers who subscribed between 2021 and 2023 about the limitations of its law-related offerings. DoNotPay will also be prohibited from claiming it can replace any professional service without providing evidence.

The FTC also announced action against other companies for using AI services to mislead customers. This includes AI “writing assistant” service Rytr, which the FTC alleges provides subscribers with tools to create AI-generated fake reviews. This move comes just over a month after the FTC announced a final rule banning all companies from creating or selling fake reviews, including AI-generated ones. This rule will soon go into effect, allowing the FTC to seek a maximum of $51,744 per violation against companies.