FTC crackdown on deceptive AI practices

In a series of enforcement actions, the FTC has highlighted several companies, including DoNotPay, Ascend Ecom, Rytr, and Ecommerce Empire Builders, for allegedly engaging in fraudulent conduct. DoNotPay, which promoted itself as the “world’s first robot lawyer,” faced scrutiny for failing to deliver on its claims of providing legitimate legal assistance. Similarly, Ascend Ecom was accused of defrauding consumers by promising substantial passive income through AI-powered tools that rarely delivered results. Rytr was cited for enabling the generation of fake consumer reviews, while Ecommerce Empire Builders misled customers about the potential profitability of its training programs and online storefronts. The FTC aims to ensure a fair marketplace for honest businesses and to protect consumers from misleading AI claims.