The cases involved AI-generated fake reviews, "the world's first robot lawyer," and online storefront schemes. The FTC said in a statement that consumers lost tens of millions of dollars, lured by the promise that AI-enabled problem-solving and automation would save them time, money, and, in the e-commerce cases, lead to increased earnings.

DoNotPay will pay $193,000 to settle charges that it misled consumers by claiming its services could draft valid legal documents.

DoNotPay employees have not tested the quality and accuracy of the legal documents and advice generated by most of the Service’s law-related features. DoNotPay has not employed attorneys and has not retained attorneys, let alone attorneys with the relevant legal expertise, to test the quality and accuracy of the Service’s law-related features.

The FTC cracks down on companies it says are overhyping their AI technologies. That includes robot lawyer service DoNotPay, which will (ironically) be forced to pay a $193,000 fine.

The FTC also requires DoNotPay to provide a notice to consumers who used its service between 2021 and 2023 warning about the limitations of its legal products, and prohibits it from making false claims about its service going forward.

The Federal Trade Commission is taking action against DoNotPay, alleging that the AI-powered company billing itself as "the world's first robot lawyer" failed to back its claims that it could replace human legal representation.