FTC v. Workado: Deceptive AI Content Detection Accuracy Claims

Summary

The FTC alleged Workado marketed its AI Content Detector as "98% accurate" at detecting AI-generated text, when that figure came from academic content only. On general writing, the model's accuracy was about 53%. Workado used the 98% figure without its own substantiating studies.

Details

• Violation: Unsubstantiated AI accuracy claims under FTC Act Section 5
• Penalty: No monetary penalty — consent order with compliance requirements
• Framework: FTC Act Section 5
• Status: Consent order proposed April 2025, finalized August 2025

Key Takeaways

1. AI accuracy claims must be backed by competent and reliable evidence
2. Using academic benchmarks to imply real-world performance is deceptive
3. Companies must retain supporting evidence for all AI performance claims
4. Three years of annual compliance checks imposed

Injunctive Relief

The consent order bars Workado from making accuracy claims without competent and reliable evidence, requires it to retain supporting evidence, notify affected consumers, and submit to three years of annual compliance checks.