The Federal Trade Commission approved a final order settling its complaint against Rytr for selling an artificial intelligence “Testimonial & Review” service.
The regulator alleged that Rytr violated the FTC Act by providing subscribers to this service with a means to generate false and deceptive content for reviews and that it engaged in an unfair business practice by offering this service, according to a Wednesday (Dec. 18) press release.
The final order prohibits Rytr from engaging in similar illegal conduct and bars it from promoting or selling any service that generates consumer reviews or testimonials, according to the release.
Rytr did not immediately reply to PYMNTS’ request for comment.
The FTC announced its law enforcement action against Rytr in September, saying the move was part of a crackdown on deceptive AI claims and schemes.
The law enforcement sweep was dubbed “Operation AI Comply” and targeted companies that the FTC said use “AI hype” or sell AI technology that can be used in deceptive and unfair ways.
“Using AI tools to trick, mislead or defraud people is illegal,” FTC Chair Lina M. Khan said in a Sept. 25 press release. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.”
In the case of Rytr, the FTC said in the release that the company’s AI “Testimonial & Review” service generated reviews that contained details that had no relation to the user’s input and that “almost certainly” would be false for those who posted them online.
“In many cases, subscribers’ AI-generated reviews featured information that would deceive potential consumers who were using the reviews to make purchasing decisions,” the release said. “The complaint further alleges that at least some of Rytr’s subscribers used the service to produce hundreds, and in some cases, tens of thousands, of reviews potentially containing false information.”
In July, the FTC said it is using “all the tools at its disposal” to oversee the rise of AI technologies. The commission said it is working “to address the rapid emergence of new technologies powered by AI and their potential risks to consumers and businesses.”
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