United States of America: Federal Trade Commission set aside prior ruling in lawsuit against Rytr for allegedly generating false reviews with AI-powered tools

Description

Federal Trade Commission set aside prior ruling in lawsuit against Rytr for allegedly generating false reviews with AI-powered tools

On 22 December 2025, the Federal Trade Commission (FTC) set aside its prior ruling in a lawsuit against Rytr LLC for allegedly generating false reviews with AI-powered tools. Following review, the FTC concluded the original order would have unduly burdened AI development, contravening the Trump Administration's Executive Order 14179, "Removing Barriers to American Leadership in Artificial Intelligence" and 2025 AI Action Plan. The order would have banned Rytr LLC from advertising, marketing, promoting, offering for sale, or selling any service dedicated to generating consumer reviews or testimonials, and would have required Rytr to submit annual compliance reports for five years. Rytr would also have been required to obtain acknowledgements of receipt of the order from all relevant personnel and entities.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
ML and AI development, platform intermediary: other
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2024-09-25
under deliberation

On 25 September 2024, the US Federal Trade Commission (FTC) announced a lawsuit against Rytr LLC fo…

2024-12-18
under investigation

On 18 December 2024, the Federal Trade Commission (FTC) finalised a consent agreement with Rytr LLC…

2025-12-22
concluded

On 22 December 2025, the Federal Trade Commission (FTC) set aside its prior ruling in a lawsuit aga…