FTC fined 'robot lawyer' DoNotPay $193,000 over unproven AI legal-service claims
At a Glance
- Significant disruption. Hours of lost work, reputational embarrassment, or measurable financial impact under $10k.
Independent project · aggregated from public reports and may be unverified — see the primary source below · not affiliated with or endorsed by any company or product named.
What Happened
The FTC charged in September 2024 that DoNotPay marketed an 'AI lawyer' as a substitute for human attorneys without testing whether it performed at a lawyer's level or employing lawyers to verify quality, and that a feature claiming to scan small-business sites for legal violations was ineffective. DoNotPay settled for $193,000, agreed to notify 2021–2023 subscribers, and was barred from unsubstantiated 'robot lawyer' claims (final order January 2025).
Case Analysis
Verified Facts
- The FTC charged DoNotPay in Sept 2024 over its 'AI lawyer' claims
- The company did not test against human-lawyer performance
- Settlement: $193,000 plus subscriber notices; final order Jan 2025
Operational Lessons
- Don't overstate AI capabilities in regulated domains
- Substantiate performance claims with evidence
Primary Source
FTC Finalizes Order with DoNotPay Over Deceptive 'AI Lawyer' Claims (FTC)ftc.gov ↗Case Record
More Cases
New York City's official 'MyCity' business chatbot told entrepreneurs they could break the law
NYC's MyCity chatbot, launched October 2023 to help business owners, was found by The Markup (March 2024) to give dangerously inaccurate legal guidance — telling users that landlords could refuse Section 8 voucher holders, that employers could take a cut of workers' tips, and that there were no limits on residential rent, all illegal under NYC/NY law. The city initially kept the bot online with a disclaimer; it was ultimately taken down.
Mississippi federal judge removed all four lawyers from a case after both sides filed AI-hallucinated citations
In the contract dispute between Tom Withers III and the City of Aberdeen, both legal teams filed briefs containing fabricated legal citations produced by generative AI. On 8 June 2026 US District Judge Sharion Aycock of the Northern District of Mississippi issued a sanction order finding Rule 11 violations and removed all four attorneys from the case: Kathleen Wilson, Shauncey Hunter Ridgeway, Mark McClinton and Kathryn Young Williams. Two of them, Ridgeway and McClinton, were barred from appearing before Northern District of Mississippi courts for two years. Judge Aycock wrote that their practice of blindly relying on technology resulted in the hallucinatory citations in their filings, and at a January 2026 hearing attorney Kathleen Wilson testified she did not know AI could hallucinate sources.
Sports Illustrated published product reviews under fake AI-generated authors with AI headshots
Futurism reported in November 2023 that Sports Illustrated published product-review content under fabricated author personas — for example 'Drew Ortiz,' whose headshot was bought from an AI-portrait site and who had no real existence — supplied by third-party vendor AdVon Commerce. After inquiries, the fake authors vanished from the site. Publisher The Arena Group denied the articles themselves were AI-written but acknowledged pseudonyms; the episode damaged SI's credibility.