lawsuitFiled
US Federal Trade Commission (FTC) v. FBA Machine / Passive Scaling (Bratislav Rozenfeld)
September 25, 2024 · United States · Online Business Opportunities
As part of Operation AI Comply, the FTC took action against FBA Machine (also known as Passive Scaling) for falsely promising guaranteed income through online storefronts utilizing AI-powered software, costing consumers over $15.9 million based on deceptive earnings claims.
Key takeaway — how to prevent this
AI that denies insurance claims or benefits must preserve meaningful human review of medical necessity; automated mass denials draw bad-faith, breach-of-contract and class-action liability.
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