Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

Solana captures 95% of tokenized stock trading volume in massive DeFi pivot

04/07/2025

You Can Buy a Martian Meteorite With Bitcoin—If You Have Upwards of $4 Million

04/07/2025

Ether eyes $2,879 as technical indicators switch bullish

04/07/2025
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    The UAE’s Transition into Bitcoin

    04/07/2025

    Two New Bitcoin Wallets Withdraw $84.2M in BTC From Binance, What’s Happening

    04/07/2025

    Satoshi’s Bitcoin Holdings Hit by Price Slump

    04/07/2025

    While Bitcoin’s Hashrate and Price Hit New Peaks, On- and Off-Chain Metrics Shrivel

    04/07/2025

    Ether eyes $2,879 as technical indicators switch bullish

    04/07/2025

    Ethereum Dropped -2.84% in Last Month and is Predicted to Reach $ 2,843.99 By Jul 07, 2025

    04/07/2025

    “If Ethereum Surpasses This Price Level, the Bull Run Will Begin”

    04/07/2025

    Ethereum set record highs in June with 6M more ETH accumulated, 1M staked — Is a breakout brewing?

    04/07/2025

    XRP ETF Delayed by SEC. When Will It Be Approved?

    04/07/2025

    XRP ETPs and Crypto ETFs to See Delays This Summer: Bloomberg Analyst

    04/07/2025

    Sei Development Foundation taps Jamie Finn as strategic advisor

    04/07/2025

    What the Big Altcoin Whales Have Been Doing in the Last 24 Hours Has Been Revealed – Here Are the Tokens They Are…

    04/07/2025

    You Can Buy a Martian Meteorite With Bitcoin—If You Have Upwards of $4 Million

    04/07/2025

    Cheaper NFTs Mean Sales Are Surging, But Trading Volume is Plummeting: DappRadar

    04/07/2025

    Chimpers Expands Into NFT-Linked Blind Box Collectibles

    04/07/2025

    Art Blocks’ PostParams Enable a New Medium for Generative Art

    03/07/2025

    Solana captures 95% of tokenized stock trading volume in massive DeFi pivot

    04/07/2025

    You Can Buy a Martian Meteorite With Bitcoin—If You Have Upwards of $4 Million

    04/07/2025

    Ether eyes $2,879 as technical indicators switch bullish

    04/07/2025

    ETF with XRP Exposure Likely Next, Top Expert Says

    04/07/2025
  • Blockchain

    AGI Open Network Collaborates with Unmarshal to Incorporate Efficient AI Agents for Web3

    04/07/2025

    Circle Rolls Out Circle Gateway to Simplify USDC Cross‑Chain Use

    04/07/2025

    Zoro and AgentsGPT Partner to Advance the Future of Tokenized AI Agents

    04/07/2025

    Ice Open Network Teams Up with Uphold to Bridge Institutional Finance and Web3

    04/07/2025

    Kima Network Taps 8lends to Innovate Cross-Chain Decentralized Lending

    04/07/2025
  • DeFi

    Solana captures 95% of tokenized stock trading volume in massive DeFi pivot

    04/07/2025

    DeFi Enters New Era as Injective Debuts High-Speed Testnet Making it the Only L1 With Unified VM Layer

    04/07/2025

    Multi-Token Swaps Go Live as Burve Debuts on Berachain

    04/07/2025

    Solana Treasury Firm Expands SOL Holdings and Staking Strategy With $2.7M Purchase

    04/07/2025

    Zilliqa Leads with 41% Surge

    04/07/2025
  • Metaverse

    Microsoft’s AI Diagnoses Like House, Bills Like Costco

    02/07/2025

    Mark Zuckerberg Unveils New Meta AI Lab After Poaching OpenAI Talent

    01/07/2025

    Can China’s MiniMax-M1 AI Topple US Rivals? We Put It to the Test

    28/06/2025

    Meta and OpenAI Use of Copyrighted Books for Training AI Was Fair Use: Federal Judge

    26/06/2025

    How to Get Your Chatbot to Talk Dirty

    18/06/2025
  • Regulation

    ETF with XRP Exposure Likely Next, Top Expert Says

    04/07/2025

    MicroStrategy’s Short Interest Reaches All-Time High—What It Means for MSTR’s Price

    04/07/2025

    Ripple Launches $700M Share Buyback at $175 Per Share

    04/07/2025

    India’s AI Market Set to Triple, Hit $17 Billion by 2027, Says BCG

    04/07/2025

    Dollar Index Falls Below 98 for First Time in Three Years, Gives Room for Crypto Run

    04/07/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    CySEC Says Former FTX EU (Now Trek Labs) Meets Compliance, Lifts Suspension

    04/07/2025

    CZ Shuts Down Binance Proof of Reserves FUD: Details

    04/07/2025

    Binance TR Announces the Launch of a Waiting Period for Bitcoin and Altcoin Investments! Here Are All the Details Users Need to Know…

    04/07/2025

    Binance taps ex-Gemini CEO to navigate Europe’s regulatory maze

    04/07/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    WizoLayer Partners with KingdomStarter to Revolutionize Web3 Gaming and DeFi

    04/07/2025

    PlayZap Games Joins Forces with DeFi Cattos to Offer Cutting-Edge Gaming via Aptos

    04/07/2025

    EverQuest, Planetside Co-Creator Reveals Open-World Shooter Game ‘Reaper Actual’

    03/07/2025

    Former Riot, Blizzard Game Developers Raise $30.5M to Build AAA Shooter on Etherlink, Tezos L2

    03/07/2025

    Esports Giant Ninjas in Pyjamas Buys Bitcoin Miners, Expects Monthly Production of $6.5M in BTC

    04/07/2025

    Tether and Adecoagro join forces for sustainable Bitcoin mining

    04/07/2025

    Summer Curtailments Slash Bitcoin Production for US Miners Amid Grid Pressures

    04/07/2025

    CleanSpark’s Tennessee expansion boosts stock 11% amid local unrest

    03/07/2025

    Oregon AG Seeks to Block Coinbase Bid to Move Securities Case to Federal Court

    04/07/2025

    Bo Hines predicts U.S crypto industry will skyrocket to $20t in value after stablecoin bill passes

    04/07/2025

    The US House Designates July 14-18 as “Crypto Week”

    04/07/2025

    Hong Kong activates stablecoin licensing on August 1 in major digital asset push

    04/07/2025

    Solana captures 95% of tokenized stock trading volume in massive DeFi pivot

    04/07/2025

    You Can Buy a Martian Meteorite With Bitcoin—If You Have Upwards of $4 Million

    04/07/2025

    Ether eyes $2,879 as technical indicators switch bullish

    04/07/2025

    ETF with XRP Exposure Likely Next, Top Expert Says

    04/07/2025
  • MarketCap
NBTC News
Home»Legal»FTC Targets AI Companies for Exaggerating Their Tech in Latest Consumer Protection Sweep
Legal

FTC Targets AI Companies for Exaggerating Their Tech in Latest Consumer Protection Sweep

NBTCBy NBTC30/09/2024No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


The U.S. Federal Trade Commission is putting companies on notice—if businesses try to fool customers by overstating what their AI can do, they’ll face serious consequences.

Also known as AI washing, the FTC announced Tuesday it had filed complaints against five companies that it said used the hype around AI to target consumers with deceptive offers.

“Using AI tools to trick, mislead, or defraud people is illegal,” said FTC Chair Lina Khan. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.”

AI washing refers to a marketing scheme where companies exaggerate or make false claims about their products or services and the use of artificial intelligence. They attempt to make a product seem more advanced or innovative than it actually is.

The companies named by the FTC include DoNotPay, which offers an AI-powered robot lawyer service; Ascend Ecom, touting AI-powered tools to help consumers quickly earn passive income.

There was also Ecommerce Empire Builders, which claimed to help consumers build an “AI-powered Ecommerce Empire” for a fee starting at $2,000. Also named in the FTC’s document was Rytr, a free generative AI writing platform, a tool to generate fake customer reviews that were used to “pollute the marketplace,” the agency alleged.

Another company, FBA Machine, formerly known as Passive Scaling, promised consumers they could operate a “seven-figure” business, citing testimonials that said clients generated over $100,000 a month in revenue.” The FTC claimed that the scheme cost consumers over $15.9 million based on deceptive earning claims.

A federal judge issued a temporary cease-and-desist order against Ascend Ecom, Ecommerce Empire Builders, and FBA Machine, putting the companies under the control of a court-ordered receiver. Further actions against DoNotPay and Rytr are pending, the FTC said.

“DoNotPay is pleased to have worked constructively with the FTC to settle this case and fully resolve these issues, without admitting liability,” a DoNotPay spokesperson told Decrypt. “The complaint relates to the usage of a few hundred customers some years ago, out of millions of people, with services that have long been discontinued.”

Decrypt has reached out to the other four companies involved but is yet to receive a response.

The DoNotPay spokesperson noted that the company retained Maneesha Mithal, former Associate Director at the FTC, as outside counsel, who they said was “incredibly helpful in handling this matter.”

Since the launch of ChatGPT in 2022 and the proliferation of AI tools online, regulators have stepped up efforts to curb the technology’s use in scams and other forms of cybercrime.

In March, the U.S. Securities and Exchange Commission charged the U.S. branch of the Toronto-based Delphia and San Francisco-based Global Predictions with breaking regulations related to marketing over making what the agency said were false and misleading claims about their AI capabilities and regulatory status, respectively.

Both companies were fined a total of $400,000 in penalties and issued a cease-and-desist order.

“Global Predictions cooperated fully with the inquiry and is pleased to put this behind us,” Global Predictions co-founder and CEO Alexander Harmsen told Decrypt at the time. “Additionally, we have clarified across our marketing how exactly we use AI,” he said.

Edited by Sebastian Sinclair

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

Related Posts

Oregon AG Seeks to Block Coinbase Bid to Move Securities Case to Federal Court

04/07/2025

Bo Hines predicts U.S crypto industry will skyrocket to $20t in value after stablecoin bill passes

04/07/2025

The US House Designates July 14-18 as “Crypto Week”

04/07/2025

Hong Kong activates stablecoin licensing on August 1 in major digital asset push

04/07/2025
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

Solana captures 95% of tokenized stock trading volume in massive DeFi pivot

04/07/2025

You Can Buy a Martian Meteorite With Bitcoin—If You Have Upwards of $4 Million

04/07/2025

Ether eyes $2,879 as technical indicators switch bullish

04/07/2025
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.