FTC v. DoNotPay
FTC v. DoNotPay — 'AI Lawyer' False-Claims Settlement
FTC · In re DoNotPay, Inc., FTC No. C-4796 (Sept. 25, 2024)
- Status
- In effect
- Took effect
- January 16, 2025
- Applies to
- DoNotPay, Inc. and similarly situated AI service marketers
The FTC settled with 'AI lawyer' DoNotPay in September 2024 over claims the company falsely marketed an AI chatbot as a substitute for a human lawyer, without ever testing whether its outputs matched a competent attorney's work. Part of the FTC's 'Operation AI Comply' sweep.
Who is protected: Consumers misled by AI-as-professional-substitute marketing
Legal detail
In re DoNotPay, Inc., No. C-4796 (FTC, consent order Sept. 25, 2024). FTC Act § 5 deception. $193,000 monetary relief to consumers; conduct relief: cease AI-lawyer substitution claims absent substantiation; notify past subscribers about the limitations of the service.
Key facts
| Jurisdiction | FTC |
|---|---|
| Level | Federal |
| Strength | Moderate |
| Citation | In re DoNotPay, Inc., FTC No. C-4796 (Sept. 25, 2024) |
| Topics | consumer protection · AI disclosure and transparency · automated decision-making |
| Agency page | FTC Announces Crackdown on Deceptive AI Claims and Schemes — FTC press release (Operation AI Comply) |
More AI rules in FTC
- FTC v. Rite Aid · In effect
- FTC v. Amazon (Ring) · In effect
- FTC v. Amazon (Alexa) · In effect
- FTC v. NGL Labs · In effect
- FTC v. Rytr · Repealed / replaced
- FTC Operation AI Comply (Sept. 2024) · In effect
Related consumer protection rules elsewhere
- Missouri AI Therapy Chatbot Ban (SB 1019) · In effect
- Vermont Data Broker Law (H.211) · Enacted (not yet in effect)
- Arkansas Frank Broyles Act AI amendment — voice and likeness protection (2025) · In effect
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- NAACP v. xAI (Colossus 2 Air Pollution) · Blocked / in litigation
- RI Therapy Chatbot Ban (2026) · In effect
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