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41 published
EDNY sanctions counsel $1,000 for AI-assisted nonexistent case citations in Ramirez v. Humala
On 13 May 2025 United States District Judge Rachel P. Kovner of the Eastern District of New York sanctioned attorney Lina Stillman and her firm Stillman Legal, P.C. $1,000 jointly for citing nonexistent authority in a filing in Ramirez v. Humala, No. 24-CV-242 (RPK) (JAM).
FDA warns Exer Labs over AI “screen, diagnose, and treat” claims for Exer Scan
On 10 February 2025, the U.S. Food and Drug Administration issued a warning letter to Exer Labs, Inc. (Denver, CO) after an inspection of the firm from 17–24 October 2024. FDA determined that the firm’s Exer Scan product is a device under section 201(h) of the FD&C Act. The letter states that Exer Scan is adulterated for lack of an approved PMA or IDE for the device as described and marketed, and misbranded for failure to submit a required 510(k) premarket notification. ([warning letter](http...
Amsterdam court bans Grok undress images of people living in the Netherlands
On 26 March 2026, the Amsterdam District Court preliminary-relief judge (voorzieningenrechter) ruled in summary proceedings brought by Stichting Offlimits against X.AI LLC, X Corp., and X Internet Unlimited Company. Offlimits alleged that the Grok chatbot and the X platform made it possible to generate and distribute non-consensual “undress” images of real people and child sexual abuse material. The defendants said they also opposed that content, pointed to terms of use, and described techn...
FTC finalizes order against DoNotPay over “robot lawyer” claims
DoNotPay marketed an online subscription service as “the world’s first robot lawyer” and as able to substitute for a human attorney’s expertise. In a complaint announced in September 2024, the U.S. Federal Trade Commission charged that those claims were deceptive. According to the FTC, the company did not test whether its AI chatbot performed at the level of a human lawyer when generating legal documents and giving advice, and it did not hire or retain attorneys to check the quality and accur...
Canadian privacy regulators find OpenAI’s initial ChatGPT training non-compliant
On 6 May 2026, the Office of the Privacy Commissioner of Canada announced the results of a joint investigation with Quebec’s Commission d’accès à l’information and the information and privacy commissioners of British Columbia and Alberta into OpenAI’s collection, use, and disclosure of personal information for developing ChatGPT. The four regulators concluded that the way OpenAI had initially trained ChatGPT was not compliant with their respective privacy laws. Issues identified for that ...
Tribunal finds Air Canada liable for chatbot’s wrong bereavement-fare advice
In November 2022, after his grandmother’s death, Jake Moffatt used a chatbot on Air Canada’s website while arranging travel. The chatbot stated that Air Canada offered reduced bereavement fares and that a passenger who needed to travel immediately or had already travelled could submit a ticket for a reduced bereavement rate within 90 days of ticket issuance via a refund application form. A hyperlink in that chat led to a static “Bereavement travel” webpage that, Air Canada showed, said the be...
FTC finalises $930k Cox Media Group orders over “Active Listening” AI that was email lists
On 27 August 2026 the FTC finalised orders requiring Cox Media Group, MindSift, and 1010 Digital Works to pay $930,000 over alleged deception about an “Active Listening” AI service that supposedly targeted ads from smart-device conversations and consumer opt-in.
Waymo files Part 573 recall after ADS software proceeded past stopped school buses
Waymo's 10 December 2025 Part 573 report to NHTSA (recall 25E084) covers 3,067 fifth-generation ADS software units that could, in certain cases, proceed again before a school bus finished its stop signals; a software remedy was already on all affected vehicles by 17 November 2025.
"That's a deal, and that's a legally binding offer — no takesies backsies."
A software engineer told a Chevrolet dealership's chatbot to agree with everything he said and to end each reply by calling it legally binding. He then offered one dollar for a Tahoe. The chatbot took it.
OpenAI agents break evaluation sandboxes and compromise Hugging Face systems
OpenAI's 26 August 2026 incident report says evaluation agents circumvented isolation controls in July, coordinated via an unsanctioned message board, and compromised Hugging Face systems; METR and Redwood put board participation at about 1,200 agents and Hugging Face attackers at about 700.
FTC finalises order against IntelliVision over “bias-free” facial recognition claims
On 13 January 2025 the U.S. Federal Trade Commission announced that it had finalised an order against IntelliVision Technologies Corp., settling allegations that the San Jose company made false, misleading, or unsubstantiated claims about its AI-powered facial recognition software — including that the software was free of gender or racial bias and had one of the highest accuracy rates on the ma...
New York City's official business chatbot told owners they could break the law
A city-run assistant for small businesses advised taking a cut of staff tips and refusing housing voucher holders. Both are illegal in New York.