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

What this rule actually says

The FTC sued Workado (formerly Content at Scale AI) for making false claims about what their AI could do and how it used customer data. The settlement requires them to back up any performance claims with real evidence, be honest about data practices, and stop misleading people about AI capabilities. This is an enforcement action against a specific company, but it signals what the FTC considers illegal in the AI space.

Who it applies to

• If you claim your AI does X better/faster/cheaper than humans: You need actual data backing that up. Marketing claims like "saves 80% of time" or "99% accurate" are now higher risk.
• If you collect user data (medical records, hiring info, customer conversations): You must be transparent about what you do with it. Hidden data sharing or secondary uses are flagged as deceptive.
• If your product involves content generation or automation: The FTC is watching this category closely after this case.
• Jurisdictions: This is US federal law (FTC), so it applies if you serve US customers or store their data in the US.
• Data scope: The rule covers how you use customer data *and* end-user data flowing through your product (if you're a medical scribe, that's patient data; if you're a hiring tool, that's candidate data).
• What's mostly out of scope: Internal AI development practices that don't affect customer-facing claims or data handling.

What founders need to do

1. Audit your marketing claims (2-3 days): Go through your website, pitch deck, demos. Flag anything quantitative ("saves X hours," "improves Y by Z%") or comparative ("better than," "fastest"). Do you have real numbers backing these up? If not, remove or soften the claim.

1. Document your data practices (3-5 days): Write down exactly what you do with customer data and end-user data. Who sees it? How long do you keep it? Do you train models on it? Create a simple privacy policy if you don't have one that actually matches your behavior.

1. Review vendor/partner contracts (1-2 days): If you're using third-party APIs or data processors, make sure you know their data practices. You're liable for misrepresentation by partners.

1. Set up a claim-verification process (1 day initial, ongoing): Before making any new performance claims in marketing, require yourself to document the evidence. Keep receipts.

Bottom line

Monitor now, act if you make comparative claims: If you're just building quietly, this is background info; if you're already making quantified or comparative marketing claims about AI performance, audit them this week.