The Federal Trade Commission (FTC) has reopened and set aside a 2024 final consent order involving Rytr LLC. The agency determined that the original complaint did not meet the legal standards required by the FTC Act and that the order placed unnecessary restrictions on artificial intelligence (AI) innovation, which would conflict with policies outlined in the Trump Administration’s Artificial Intelligence Executive Order and America’s AI Action Plan.
“Condemning a technology or service simply because it potentially could be used in a problematic manner is inconsistent with the law and ordered liberty,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The Trump-Vance FTC is focused on promoting innovation in America’s most important industries by targeting fraud and tangible consumer harm.”
The 2024 consent order had resolved allegations that Rytr's AI-powered writing assistance service enabled users to create false or deceptive online reviews, which was claimed to violate the FTC Act. Under that order, Rytr was banned from offering any AI-enabled services for generating consumer reviews or testimonials.
Upon review prompted by President Trump’s AI Action Plan, the FTC found insufficient evidence to support claims that Rytr violated Section 5 of the FTC Act. The agency also concluded that maintaining such an order would hinder innovation within the emerging AI sector and determined it should be set aside in the public interest.
The statement from the FTC noted continued commitment to enforcing laws against those who use AI to deceive consumers or misrepresent generative AI capabilities but clarified this did not apply to Rytr.
Rytr agreed to vacate the previous order and waived any rights under Rule 3.72(b) of the Commission’s Rules of Practice.
The decision to reopen and set aside the final decision was unanimous among participating commissioners, passing with a vote of 2-0.
The FTC continues its mission to promote competition as well as protect and educate consumers. It reminds individuals that it does not demand money, make threats, request transfers of funds, or promise prizes. More information about consumer protection can be found at consumer.ftc.gov, while reports about scams or bad business practices can be submitted at ReportFraud.ftc.gov.
