United States of America: Issued ruling in FTC lawsuit against Rytr LLC for allegedly generating false reviews with AI-powered tools

On 18 December 2024, the Federal Trade Commission (FTC) finalised a consent agreement with Rytr LLC to address alleged violations. Rytr, an AI writing service, was accused of generating detailed but misleadingly realistic reviews, many of which were false. The imposed provisions include a ban on review or testimonial generation services, prohibiting Rytr LLC from advertising, marketing, promoting, offering for sale, or selling any service dedicated to generating consumer reviews or testimonials. Further, Rytr LLC must obtain acknowledgements of receipt of the FTC ruling from all relevant personnel and entities, including principals, officers, directors, managers, employees, and agents involved in conduct related to the ruling. Lastly, Rytr LLC must submit annual compliance reports and create and retain records related to its revenues, costs, personnel, consumer complaints, compliance efforts, and any evidence of non-compliance for a period of five years.