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
Affected industries
Affected roles
Frameworks
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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