The Federal Trade Commission (FTC) issued a press release this week announcing that it settled with Workado over alleged misrepresentations of its ability to detect whether content was generated by artificial intelligence (AI) or humans.
Workado’s AI Content Detector was marketed to consumers as a tool to decipher whether online content was generated by AI or a human being. Workado marketed the product as being “98 percent” accurate, but the FTC found that “independent testing showed the accuracy rate on general-purpose content was just 53 percent.” The FTC alleged that “the product did no better than a coin toss.” The claim of 98 percent accuracy was misleading, false, and not substantiated, according to the FTC.
The consent order prohibits Workado “from making any representations about the effectiveness of any covered product unless it is not misleading, and the company has competent and reliable evidence to support the claim at the time it is made”; requires Workado “to retain any evidence it uses to support such efficacy claims; email eligible consumers about the consent order and settlement with the Commission; and submit compliance reports to the FTC one year after the order is issued and every year for the following three years.”
The FTC continues to concentrate on misrepresentations of companies around products and services, which is a potent reminder not to overstate capabilities in advertising.