The U.S. Federal Trade Commission (FTC) has filed complaints against five companies for allegedly using deceptive marketing tactics relating to artificial intelligence (AI). The practice, known as AI washing, involves companies exaggerating or making false claims about their AI-powered products or services to make them appear more advanced or innovative than they actually are. The companies named by the FTC include DoNotPay, Ascend Ecom, Ecommerce Empire Builders, Rytr, and FBA Machine. The FTC claims that these companies misled consumers with their AI-related offers, resulting in losses totaling over $15.9 million. A federal judge has issued a temporary cease-and-desist order against Ascend Ecom, Ecommerce Empire Builders, and FBA Machine, while further actions against DoNotPay and Rytr are pending. Regulators have been clamping down on the use of AI in scams and cybercrime, with the SEC recently charging Delphia and Global Predictions for making false and misleading claims about their AI capabilities.



Other News from Today