FTC cracks down on deceptive AI practices, targeting DoNotPay and Rytr for false claims.

The FTC has launched a crackdown on deceptive practices involving AI, targeting companies like DoNotPay and Rytr. DoNotPay settled for $193,000 after falsely claiming its chatbot could replace human lawyers. Rytr agreed to halt its review generation services linked to fake reviews. The FTC emphasizes that using AI to mislead consumers is illegal, reinforcing that there are no exemptions for AI in existing laws. Other firms are also being prosecuted for fraudulent AI schemes.