FTC Announces Crackdown on Companies "Misrepresenting AI Capabilities," Charges First Five Firms

USAThe Federal Trade Commission (FTC) announced on September 25th that it would be issuing an order to thefalse propaganda The first five companies to be sued by the FTC include DoNotPay, Ascend Ecom, Ecommerce Empire Builders, Rytr, and FBA Machine.

DoNotPay, among other things, is said to offer a robot lawyer service, an AI mainstay launched in 2016 by Stanford student Joshua Browder that claims to be able to replace human lawyers, with a quarterly subscription fee of $36 (IT Home note: currently around Rs. 252).

FTC Announces Crackdown on Companies "Misrepresenting AI Capabilities," Charges First Five Firms

The FTC found that DoNotPay could not prove that its robot lawyers were equivalent to human lawyers.And some of the features of the service offered by the company are clearly falseFor example, it claims that users can test their own websites for violations of hundreds of federal regulations with a single click.

Rytr, on the other hand, offers an AI review service, and the FTC noted that many of the reviews generated by Rytr were of significantly lower quality.It contains a lot of false information that pollutes the marketplaceIt has become a tool for merchants to brush up their reviews.

Ascend Ecom, Ecommerce Empire Builders, and FBA Machine, which are involved in e-commerce services, claimed that their AI tools could help users create online stores with a single click and realize "thousands to tens of thousands of dollars in passive income per month," but in fact none of the companies' AI tools were able to create stores with a single click, and they refused to refund consumers who had purchased the services, so they were sued by the FTC. However, none of the companies' AI tools were able to create online stores with a single click, and they were sued by the FTC for refusing to refund consumers who purchased the services.

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