ARTICLE
7 October 2024

FTC Targets Companies Allegedly Using AI To Deceive Consumers

The FTC announced the launch of "Operation AI Comply," which includes enforcement actions filed against companies alleged to have used AI while engaging in unfair or deceptive conduct harming consumers.
United States Consumer Protection
  • The FTC announced the launch of "Operation AI Comply," which includes enforcement actions filed against companies alleged to have used AI while engaging in unfair or deceptive conduct harming consumers.
  • The enforcement actions include a lawsuit and proposed consent order against DoNotPay, Inc. to resolve allegations that it failed to test the quality and accuracy of the assistance provided by its AI-powered civil legal services; a lawsuit and proposed consent order against Rytr LLC, to resolve allegations that it marketed and sold an AI "writing assistant" that generates false and deceptive written content for consumer reviews; and lawsuits against Ascend Capventures Inc., Empire Holdings Group LLC, TheFBAMachine Inc., and related entities for allegedly claiming that their AI-powered tools would assist consumers in earning passive income though online storefronts.
  • We have recently covered other AI-related regulatory and enforcement actions, including AG Paxton's settlement with a generative AI healthcare company over safety and accuracy concerns; the passage of a Colorado law regulating the use of AI-generated "deepfakes" in political messaging; and a comment letter submitted by 15 Republican AGs arguing for regulation of AI in the financial services sector.

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