AI & Automation

The FTC sued Air AI Technologies and its three owners in August 2025 over coaching and "conversational AI" sold on false earnings claims and refund guarantees it did not honor. The complaint puts losses at roughly $19 million. A settlement banning it from marketing business opportunities followed in March 2026.

The FTC charged DoNotPay in September 2024 over marketing its subscription service as "the world's first robot lawyer" without testing whether it performed to the standard of a human lawyer. It settled for $193,000 and agreed to notify subscribers about the service's limitations.

The Texas Attorney General settled with this Dallas AI company in September 2024 after finding its advertised "severe hallucination rate" of under 1 per 100,000 was likely inaccurate. Its software was already deployed in at least four Texas hospitals. First state AG settlement over generative AI marketing.

The FTC alleged Evolv falsely advertised that its AI weapons scanners would detect all weapons and ignore harmless items, when the FTC said the scanners detect metal and little else. Used in 800-plus schools. Certain K-12 customers were given a rare right to cancel multi-year contracts.

The FTC charged IntelliVision with making false and unsubstantiated claims that its facial recognition software was free of gender and racial bias and highly accurate, when the FTC said it was trained on roughly 100,000 faces and had not been adequately tested. A final order was entered in January 2025.

Workado advertised its AI Content Detector as 98 percent accurate at telling whether text was written by AI or a human. Independent testing put it at 53 percent on general-purpose content. The FTC order requires evidence before any future accuracy claim, and required Workado to email its own customers.

The FTC alleged that Automators AI and related companies sold AI-powered e-commerce stores and coaching with unfounded earnings claims. The defendants settled, agreed to surrender assets for refunds, and accepted restrictions including business opportunity bans.