The FTC has taken another decisive step in its enforcement of misleading AI advertising. On August 28, 2025, the Commission approved a final consent order against Workado, LLC (formerly Content at Scale AI) for overstating the accuracy of its AI "content detection" tool.
What Happened
Workado marketed its AI Content Detector as being able to reliably distinguish human-written content from AI-generated text—and claimed it was broadly trained to serve average consumers. According to the FTC, however, the tool was actually trained almost exclusively on academic content and performed poorly beyond that domain. The broad applicability claims thus amounted to deception.
The final order requires Workado to:
- Stop making accuracy or efficacy claims about the tool unless supported by "competent and reliable evidence."
- Retain evidence backing any efficacy claims.
- Notify affected customers of the settlement.
- Submit annual compliance reports to the FTC for four years. (FTC press release)
Enforcement Pattern: A Consistent Message
Workado is the latest in a string of enforcement actions signaling the FTC's heightened scrutiny of AI-related marketing claims—particularly those that overstate performance, accuracy, or benefits.
Air AI (August 25, 2025): The FTC alleged that the company misled consumers regarding its AI tool, including its ability to generate earnings (which proved to be grossly exaggerated), and failed to honor promised refunds. As we noted in our earlier coverage, the Commission made clear that AI marketing claims are subject to the same advertising standards as any other claims. (Read our analysis here)
AI-Driven Business Opportunity Scheme (April 2025): Earlier this year, the FTC shut down a business that used AI to pitch deceptive "get rich quick" opportunities. As we discussed in our blog post, this case underscored that the agency is prioritizing AI-related marketing abuses across a range of contexts—not just consumer tools. (Read our analysis here)
Together, these actions make clear: AI doesn't get special treatment. Misleading marketing—AI-driven or not—will be analyzed under the same rigorous lens.
Key Takeaways for Marketers and Counsel
- Substantiate all claims: Whether accuracy, performance, or earnings—claims require solid evidence.
- Be crystal clear on scope: If your tool was trained only on academic content, don't market it as universally effective.
- Process over posturing: Vet marketing claims early in the development cycle—not after ads are live.
- Transparency fosters trust: Clear disclosure of limitations not only helps consumers but also protects against regulatory risk.
Conclusion
Workado's settlement is the latest chapter in the FTC's increasing enforcement pressure on AI-related advertising claims. The bottom line: AI may be flashy, but FTC standards remain unwavering—truth, transparency, and proof still rule.
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