Sue Anyone with a Click of a Button? FTC Cracks Down on DoNotPay’s Misleading AI Claims

By: Kerry L. Alvarez

How comfortable are you asking for legal advice on the internet?  Do you trust the accuracy of what you find in your search results?  Now, imagine bypassing traditional legal fees and hiring an internet “Robot Lawyer” instead of a human attorney.  While this might sound like the future of accessible legal services, recent developments have exposed serious risks.  DoNotPay, a company that claimed to offer the world’s first “Robot Lawyer” promised to revolutionize the legal industry by replacing human attorneys with AI-generated legal solutions.

DoNotPay, originally founded by Joshua Browder in 2015 was made to assist users with fighting traffic tickets.  The company later expanded its services to cover a wider range of legal matters, and claimed the title of the “world’s first robot lawyer”.  The process in which  this claim was based on was when there is an individual contesting a speeding ticket, for example, they would wear smart glasses that not only recorded the court proceedings but also relayed responses to the defendant through a small speaker in their ear.  This system utilized several AI text generators, such as ChatGPT.

Originally, the release of this service was scheduled to occur in California in February 2023.  Many concerns arose across multiple state bars and attorneys.  The development of this system ignited concerns involving the practicality and accuracy of remote legal services and the unauthorized practice of law.  The FTC’s complaint against DoNotPay claims that the company falsely advertised its service as enabling consumers to “sue for assault without a lawyer” and to generate valid legal documents in a quick way, aiming to disrupt the services the legal industry provides with AI.  However, DoNotPay failed to back up these claims with proper testing or legal expertise.  Additionally, the complaint alleges that the company offered a service to identify federal and state law violations on small business websites based solely on consumers’ email addresses, suggesting that it could save businesses up to $125,000 in legal fees.  However, this service was also deemed ineffective.

The settlement mandates that the company pay $193,000 and notify consumers who subscribed to the service between 2021 and 2023 about the limitations of its law-related features.  Additionally, the proposed order will prevent DoNotPay from claiming it can replace any professional service without providing supporting evidence.  In the FTC’s complaint, they alleged that DoNotPay  employees failed to test the quality and accuracy of the legal documents and advice produced by the majority of the law-related features.  Additionally, the company neither employed nor retained attorneys.

Legal cases are deeply personal, with no two being exactly alike, yet this type of artificial intelligence relies on standardized processes that often fail to account for the unique circumstances of each client.  While a robot lawyer may provide general advice, it cannot address the emotional and situational needs of clients or fully understand the broader context that can affect a case’s outcome.  This reliance on AI can also mislead consumers into believing they are receiving the same level of service and accuracy as they would from a licensed attorney.  This creates a  false sense of security, combined with the lack of accountability in many AI platforms, putting consumers at significant risk.  Because these AI services provide legal advice, representation, or services without the necessary qualifications which is used to protect individuals from receiving inadequate or harmful legal advice raises the issue of the unauthorized practice of law.

Instead of relying on artificial intelligence for legal advice, obtaining a licensed attorney ensures that you receive personalized, accurate, and ethical guidance.  Licensed attorneys are trained to handle the complexities of the law, offering tailored advice and representation.  While AI tools may offer convenience, they cannot replace the critical judgment, experience, and accountability that a human attorney can provide.  For individuals who may not be able to afford or locate an attorney, there are several alternatives available.  Pro bono attorneys often offer free legal services to those in need.  Local bar associations and nonprofits like Legal Aid provide assistance in various legal areas as well.

While artificial intelligence has made strides in various industries, its use in providing legal services comes with significant limitations and risks.  AI-powered tools, such as DoNotPay, may offer general legal assistance but cannot substitute the expertise, accountability, and personal attention that licensed attorneys provide.  The FTC’s action against DoNotPay highlights the dangers of these untested claims, emphasizing the need for transparency and reliability in legal services.

 

Student Bio:  Kerry Alvarez is a third-year law student at Suffolk University Law School and staff writer on the Journal of High Technology Law.  Kerry received a Bachelor of Arts in English from The College of New Jersey.

Disclaimer: The views expressed in this blog are the views of the author alone and do not represent the views of JHTL or Suffolk University Law School.

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