US: FTC launches 'Operation AI Comply' to combat AI-driven consumer deception

Federal Trade Commission takes action against multiple companies for misleading AI-powered services, including DoNotPay, Ascend Ecom, and others...

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The Federal Trade Commission (FTC) has launched "Operation AI Comply," targeting companies that misuse AI for deceptive or unfair practices that harm consumers.

The FTC announced actions against several companies:

1. DoNotPay falsely claimed to offer an AI-powered legal service, "the world’s first robot lawyer." It failed to deliver on its promises and was fined $193,000.

2. Ascend Ecom is accused of running a fraudulent AI-powered business scheme, falsely promising consumers substantial passive income from online storefronts.

3. Ecommerce Empire Builders (EEB) charged consumers large fees for AI-powered ecommerce services but failed to generate the promised profits.

4. Rytr offered an AI tool that created fake reviews, misleading consumers about product quality.

5. FBA Machine falsely claimed its AI tools would help users earn guaranteed profits through online stores.

It’s safe to say that this list could grow very soon...