FTC Announces Crackdown on Deceptive AI Claims and Schemes

The FTC is taking action against multiple companies that relied on artificial intelligence as a way to supercharge deceptive or unfair conduct that harms consumers.

The cases include a company promoting an AI tool that enabled its customers to create fake reviews, a company claiming to sell “ AI Lawyer ” services, and companies claiming that they could use AI to help consumers make money through online storefronts.

The FTC has charged a business opportunity scheme with falsely claiming to help consumers build an “AI-powered Ecommerce Empire” by participating in its training programs that can cost almost $2,000 .

A federal court issued an order temporarily halting the scheme and putting it under the control of a receiver.

The FTC ’s case against the scheme is ongoing and will be decided by a federal court.

The Commission vote authorizing the staff to file the complaint was 5 -0.

Bratislav Rozenfeld rebranded the scheme as FBA Machine in 2023 .

The scheme’s claims were wide-ranging, promising consumers that they could operate a “ 7 -figure business” A federal court issued an order temporarily halting the scheme and putting it under the control of a receiver.

The case against the scheme is still under way.