enforcement action United States comment period 6/10
Government · Federal Trade Commission

FTC proposed a consent order addressing allegedly deceptive marketing of DoNotPay's AI legal service.

The Federal Trade Commission published a proposed consent agreement concerning DoNotPay's allegedly deceptive marketing of an AI-powered legal service. The proposal was subject to final approval and public comment, with comments due October 30, 2024; the described provisions should not be treated as binding duties without evidence of finalization.

Action required

Treat this as a proposed FTC enforcement matter for monitoring and factual context. Do not treat the described provisions as binding duties without evidence of final approval and an effective final order.

Binding status

proposed

Governing body

Federal Trade Commission

Direction

restrictive

Innovation impact

mixed

Enforcement details

Case name

In re DoNotPay, Inc.

Agency

Federal Trade Commission

Penalty

$193,000

Compliance requirements

Required disclosures

  • Provide eligible customers with notice of the consent order and settlement, if the proposed order is finalized.

Prohibited practices

  • Representing that a service operates like a human lawyer or other professional without nonmisleading representation and competent, reliable substantiation.
  • Misrepresenting that a service can analyze or evaluate websites or documents for federal or state law violations.
  • Misrepresenting that a service will save consumers legal fees.
  • Misrepresenting product or subscription features, benefits, or attributes.

Transparency requirements

  • Use nonmisleading, substantiated representations about AI service capabilities.
  • Accurately describe available subscription features and benefits.

AI technologies

generative ailarge language modelsnlp

Affected industries

technologylegaladvertising

Affected roles

general counselcompliance officerproduct managermarketing

Frameworks

ftc

Cross-references

Cites laws

Federal Trade Commission Act, 15 U.S.C. 45, Federal Trade Commission Act, 15 U.S.C. 46(f), 16 CFR 2.34, 16 CFR 4.9(c), 16 CFR 4.10(a)(2)

Enriched 2026-10-09 · resolved via federal register complete

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