[Federal Register Volume 90, Number 84 (Friday, May 2, 2025)]
[Notices]
[Pages 18857-18858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-07617]


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FEDERAL TRADE COMMISSION

[File No. 232 3092]


Workado, LLC, f/k/a Content at Scale AI; Analysis of Proposed 
Consent Order To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of Federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis of Proposed Consent Order to Aid 
Public Comment describes both the allegations in the complaint and the 
terms of the consent order--embodied in the consent agreement--that 
would settle these allegations.

DATES: Comments must be received on or before June 2, 2025.

ADDRESSES: Interested parties may file comments online or on paper by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Please write ``Workado; File 
No. 232 3092'' on your comment and file your comment online at https://www.regulations.gov by following the instructions on the web-based 
form. If you prefer to file your comment on paper, please mail your 
comment to: Federal Trade Commission, Office of the Secretary, 600 
Pennsylvania Ave. NW, Mail Stop H-144 (Annex D), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Ben Halpern-Meekin (206-220-0000) and 
Joe Lipinsky (206-220-4437), Attorneys, Northwest Region, Bureau of 
Consumer Protection, Federal Trade Commission, 400 7th St. SW, 
Washington, DC 20024.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule Sec.  2.34, 16 CFR 
2.34, notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of 30 days. The following 
Analysis to Aid Public Comment describes the terms of the consent 
agreement and the allegations in the complaint. An electronic copy of 
the full text of the consent agreement package can be obtained at 
https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before June 2, 2025. 
Write ``Workado; File No. 232 3092'' on your comment. Your comment--
including your name and your State--will be placed on the public record 
of this proceeding, including, to the extent practicable, on the 
https://www.regulations.gov website.
    Because of heightened security screening, postal mail addressed to 
the Commission will be subject to delay. We strongly encourage you to 
submit your comments online through the https://www.regulations.gov 
website. If you prefer to file your comment on paper, write ``Workado; 
File No. 232 3092'' on your comment and on the envelope, and send it 
via overnight service to: Federal Trade Commission, Office of the 
Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex D), 
Washington, DC 20580.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include sensitive 
personal information, such as your or anyone else's Social Security 
number; date of birth; driver's license number or other State 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure your comment does not include 
sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule Sec.  
4.10(a)(2), 16 CFR 4.10(a)(2)--including competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule Sec.  4.9(c). In 
particular, the written request for confidential treatment that 
accompanies the comment must include the factual and legal basis for 
the request and must identify the specific portions of the comment to 
be withheld from the public record. See FTC Rule Sec.  4.9(c). Your 
comment will be kept confidential only if the General Counsel grants 
your request in accordance with the law and the public interest. Once 
your comment has been posted on the

[[Page 18858]]

https://www.regulations.gov website--as legally required by FTC Rule 
Sec.  4.9(b)--we cannot redact or remove your comment from that 
website, unless you submit a confidentiality request that meets the 
requirements for such treatment under FTC Rule Sec.  4.9(c), and the 
General Counsel grants that request.
    Visit the FTC website at https://www.ftc.gov to read this document 
and the news release describing the proposed settlement. The FTC Act 
and other laws the Commission administers permit the collection of 
public comments to consider and use in this proceeding, as appropriate. 
The Commission will consider all timely and responsive public comments 
it receives on or before June 2, 2025. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an agreement containing a consent order from 
Workado, LLC, f/k/a Content at Scale AI (``Workado''). The proposed 
consent order (``proposed order'') has been placed on the public record 
for 30 days for receipt of public comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement and take appropriate action or make final 
the agreement's proposed order.
    In response to public concerns about the difficulty identifying 
content created through the use of artificial intelligence (AI), the 
market has responded with AI detection products. Workado markets and 
offers for sale an AI text detector. Workado claimed its AI text 
detector could classify text as human-created or AI-generated with over 
98 percent accuracy across all types of text from generative AI 
programs, like ChatGPT, Claude, and GPT-4.
    The complaint alleges Workado violated section 5(a) of the FTC Act 
because its accuracy claim was false or misleading or was not 
substantiated at the time the representation was made. The complaint 
specifically alleges Workado lacked competent and reliable evidence to 
show its AI detector could perform with 98 percent accuracy across many 
types of text generated by a wide range of generative AI programs. The 
complaint also alleges the AI model powering Workado's detector was 
trained or fine-tuned to accurately classify only academic content, 
rather than the types of marketing content submitted by Workado users, 
making it incapable of performing with 98 percent accuracy for its 
intended purpose. Further, testing shows the AI model powering 
Workado's detector could correctly classify non-academic AI-generated 
text with around 53 percent accuracy.
    The proposed order contains provisions designed to prevent Workado 
from engaging in these and similar acts and practices in the future. 
The proposed order covers products that detect or purport to detect 
content, including text, images, and video, generated or altered by AI 
in any way.
    Provision I prohibits Workado from making any representation about 
the efficacy of any product covered by the proposed order unless that 
representation is not misleading and Workado has competent and reliable 
evidence that is sufficient in quantity, quality, and timeliness to 
support its claim.
    Provision II requires Workado to retain any competent and reliable 
evidence, including competent and reliable scientific evidence, upon 
which it relies to substantiate any claim about the efficacy of any 
product covered by the proposed order. Provision III requires Workado 
to post, not later than one day after making covered claims, on any of 
its web pages concerning a product covered by this proposed order, a 
statement describing its substantiating evidence for claims about that 
product. Provision IV requires Workado to email eligible customers with 
notice of the consent order and the settlement.
    Provisions V through IX relate to notice and compliance. Provision 
V requires that Workado acknowledge receipt of the order; distribute 
the order to principals, officers, and certain employees and agents; 
and obtain signed acknowledgements from them. Provision VI requires 
Workado to submit compliance reports to the Commission one year after 
the order's issuance, for three years thereafter, and when certain 
events occur. Provision VII requires Workado to create certain records 
for 10 years and retain them for five years thereafter. Provision VIII 
requires Workado to provide information or documents necessary to 
monitor compliance with the order during the period of the order's 
effective dates. Provision IX provides the effective dates of the 
order, including that, with exceptions, the order will terminate in 20 
years.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify in any 
way the proposed order's terms.

    By direction of the Commission.
Joel Christie,
Acting Secretary.
[FR Doc. 2025-07617 Filed 5-1-25; 8:45 am]
BILLING CODE 6750-01-P