FTC Penalizes Workado for Misrepresenting AI Content Detection Accuracy

In August 2025, the Federal Trade Commission (FTC) gave final approval to a consent order against Workado, LLC (formerly known as Content at Scale AI), resolving allegations that the company made false and unsubstantiated claims regarding the accuracy and training of its artificial intelligence (AI) content detection product.

The AI System and Deceptive Claims at Issue

Workado marketed its "AI Content Detector" tool to consumers, writers, and businesses seeking to distinguish between generative AI-created text (such as text from ChatGPT) and human-written content. To promote the product, Workado claimed that the detector was "98 percent" accurate. The company also asserted that the tool had been developed and trained using a wide range of general materials, including blog posts and Wikipedia entries, to ensure high accuracy for average users.

However, the FTC's investigation and administrative complaint revealed that the AI model powering Workado's detector was primarily trained or fine-tuned to classify academic content, making it highly ineffective for general-purpose text. Independent testing of the tool on general-purpose content revealed an actual accuracy rate of just 53 percent—which the FTC's Bureau of Consumer Protection characterized as "no better than a coin toss."

Legal Basis and Charges

The FTC charged Workado under Section 5 of the FTC Act, alleging that the company's "98 percent" accuracy representation and claims about the tool's training data were false, misleading, and non-substantiated.

Outcome and Compliance Requirements

Following a public comment period, the Commission voted 3-0 on August 28, 2025, to approve the final consent order. While the settlement did not include a direct monetary fine, it imposes strict compliance obligations:

• Accuracy and Efficacy Restrictions: Workado is prohibited from making any representations regarding the effectiveness or accuracy of any AI content detection product unless the claim is non-misleading and backed by "competent and reliable evidence" at the time it is made.
• Evidence Retention: Workado must retain all evidence used to support any future product performance claims.
• Consumer Notification: Workado is required to email eligible consumers who purchased or used the tool, notifying them of the FTC's consent order and settlement.
• Compliance Monitoring: Workado must submit compliance reports to the FTC one year after the order's issuance and annually for the subsequent three years.

Under the FTC Act, any future violations of the final order may result in civil penalties of up to $53,088 per violation.