Alvaro Puig, FTC
There’s been a lot of hype and excitement about artificial intelligence and all the amazing things it can, or one day might, do. Some companies are developing and selling AI tools, while others are flaunting the benefits of incorporating it into their existing business models. And some businesses aren’t being truthful when it comes to AI.
With the announcement of Operation AI Comply, the FTC is cracking down on AI-infused frauds and deception, including chatbots supposedly giving “legal advice,” AI software that lets people create fake online reviews, and false claims of huge earnings from AI-powered business opportunities.
Chatbots — a type of AI that creates humanlike “answers” in response to a user’s prompt — might be useful when the stakes are low, like getting ideas for a new game or finding a recipe. But AI responses can be inaccurate, inadequate, misleading, or made up. The FTC just sued U.K. based DoNotPay for falsely claiming its chatbot could act like a “robot lawyer” and produce “iron clad” legal documents for people.
Verify any answers you get from a chatbot by searching online or checking with a reputable source. And don’t rely solely on a chatbot for medical, legal, or financial advice.
AI is also fueling a flood of fake online reviews. The FTC says Rytr sells an AI tool that lets people create fake online reviews on a massive scale. When you’re reading online reviews, tread carefully.
And some companies are using AI hype and false earnings claims to trick people into investing in their business opportunities. These companies, says the FTC, include three sued by the FTC: Ascend, Ecommerce Empire Builders, and FBA Machine.
If you’re thinking about buying into a business opportunity, don’t let the AI hype cloud your judgment. Ask the seller to give you the 1-page disclosure document required by law. If the seller makes an earnings claim, they also must give you an earnings claim statement. And if the seller says anything that contradicts what’s written in their disclosure document or earnings claim statement, that’s a sign of a shady business you want to steer clear of.
