What happened
01
The company claimed its AI could draft legal documents and advise like a lawyer.
02
It had no evidence for the claim.
03
The case was part of the FTC's “Operation AI Comply”.
04
Settlement: $193,000 and notice to 2021 to 2023 subscribers.
Why this is a design failure
People rely on a legal service without knowing its limits.
The fair design
State the service's limits and refer real cases to a lawyer.
Do
Refer users to a professional early and disclose the assistant’s limits.
Don’t
Do not give definitive legal or health advice on your own.
Company response
No published response from the company.