This article reviews public US Federal Trade Commission proceedings for business context. It is not legal advice. The implications of an order for a particular business should be reviewed with appropriate counsel.
DoNotPay and legal capability claims
On 11 February 2025, the FTC announced a final order concerning DoNotPay. The matter addressed claims that the service could replace human legal expertise. The settlement included $193,000 in monetary relief, restrictions on unsubstantiated claims, and notice to certain customers.
Our practical takeaway is that a claim to professional expertise needs evidence suited to the promise being made. Using AI does not remove that responsibility.
Cleo and financial service terms
In March 2025, the FTC announced a proposed $17 million settlement with Cleo AI. The allegations concerned cash advances, subscriptions, and cancellation. This should not be reduced to a finding that its model was unsafe; the complaint and order provide the precise issues and terms.
For a business, the lesson is to review pricing, consent, and cancellation alongside the description of the technology.
Practical steps
Connect material website and sales claims to tests and evidence. Involve the appropriate legal, product, and customer service reviewers before publication. Where a capability depends on a supplier, check that the contract and supporting information match what you tell customers.
Common questions
Does every reference to AI create a violation? No. The question is whether the claim is accurate and supported under the applicable rules. Are these examples relevant outside the US? They can inform a process review, but local legal requirements must be assessed separately.