The settlement prohibits the sale of AI tools designed to create fake testimonials and reviews.
The Federal Trade Commission (FTC) has finalized a consent order against Rytr, resolving claims that the company sold an AI-based service enabling users to generate false and misleading online reviews. According to the FTC’s complaint in September, the service created highly detailed reviews unrelated to user input—leading to inaccuracies when users posted them online. The FTC accused Rytr of violating the FTC Act by facilitating deceptive practices and contributing to an influx of fake reviews in the marketplace.
Under the settlement, the company is barred from offering services designed to produce fake reviews or testimonials in the future. The FTC approved the final order following a public comment period, with Commissioners Melissa Holyoak and Andrew Ferguson dissenting. The FTC stated its commitment to curbing unfair business practices and maintaining trust in online reviews.
As the Lord Leads, Pray with Us…
- For Chair Lina Khan and the rest of the commissioners of the FTC as they seek to hold businesses accountable.
- For wisdom for the members of the FTC as they consider violations of federal regulations.
Sources: Federal Trade Commission
