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FTC order requires Workado to offer competent and reliable evidence to support the 98% accuracy and efficacy claims of its AI content detection product

April 30, 2025 //  by Finnovate

The Federal Trade Commission issued a proposed order requiring Workado, LLC to stop advertising the accuracy of its AI detection products unless it maintains competent and reliable evidence showing those products are as accurate as claimed. The settlement will be subject to public comment before becoming final. The order settles allegations that Workado promoted its AI Content Detector as “98 percent” accurate in detecting whether text was written by AI or human. But independent testing showed the accuracy rate on general-purpose content was just 53 percent, according to the FTC’s administrative complaint. The FTC alleges that Workado violated the FTC Act because the “98 percent” claim was false, misleading, or non-substantiated. The proposed order settling the complaint is designed to ensure Workado does noat engage in similar false, misleading, or unsupported advertising in the future. Under the proposed order, Workado: 1) Is prohibited 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; 2) Is required to retain any evidence it uses to support such efficacy claims; 3) Must email eligible consumers about the consent order and settlement with the Commission; and 4) Must submit compliance reports to the FTC one year after the order is issued and every year for the following three years.

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