The Federal Trade Commission (FTC) is taking against five organisations which use AI to deceive consumers as part of a new law enforcement scheme.

Firms being investigated under Operation AI Comply include a company selling fake reviews, another offering legal advice and firms promising guaranteed income.

One of the companies that the FTC is investigating is DoNotPay, a company that claimed to offer an AI service that was “the world’s first robot lawyer.” However, the FTC said it failed to provide a service that could substitute for a human lawyer.

The FTC is also taking action against Ascend Ecom, which claims its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income by opening online storefronts. According to the complaint, the scheme has defrauded consumers of at least $25 million.

Claims around artificial intelligence have become more prevalent in the marketplace, and the FTC said these include frequent promises about the ways it could potentially enhance people’s lives through automation and problem solving.

The FTC added that cases included in this action show firms have jumped on the hype surrounding AI and are using it to lure consumers into bogus schemes and are providing AI powered tools that can “turbocharge” deception.

“Using AI tools to trick, mislead, or defraud people is illegal,” said FTC chair Lina M. Khan. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.

“By cracking down on unfair or deceptive practices in these markets, the FTC is ensuring that honest businesses and innovators can get a fair shot and consumers are being protected.”

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