FTC Fines DoNotPay Over Misleading Claims of 'Robot Lawyer'

The U.S. Federal Trade Commission has ordered DoNotPay to stop making deceptive claims about its AI chatbot advertised as 'the world's first robot lawyer,' in a ruling that requires the company to pay $193,000 in monetary relief. The final order, announced on February 11, follows FTC charges from September 2024 that DoNotPay's service failed to match the expertise of human lawyers when generating legal documents and giving advice.

The company had not tested its AI's performance against human lawyers or hired attorneys to verify the accuracy of its legal services, the FTC said. Under the settlement, approved by commissioners in a 5-0 vote, DoNotPay must notify customers who subscribed between 2021 and 2023 about the FTC action and cannot advertise its service as equivalent to a human lawyer without supporting evidence.

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