Illegal conduct: FTC vs Rytr, Seller of an AI “Testimonial & Review” Service
Thursday 19 de December 2024 / 12:00
⏱ 1 min read
(Washington D.C.).-The Federal Trade Commission has approved a final consent order against Rytr, settling allegations that it sold an AI “Testimonial & Review” service that provided subscribers with the means of generating false and deceptive online reviews.
The FTC’s September 2024 complaint alleges Rytr’s service generated detailed reviews that contained specific, often material details that had no relation to the user’s input, so almost certainly would be false for the users who copied them and published them online. Accordingly, the complaint charges Rytr violated the FTC Act by providing subscribers with the means to generate false and deceptive written content for reviews. It also alleges Rytr engaged in an unfair business practice by offering a service that is likely to pollute the marketplace with a glut of fake reviews.
The final order settling the Commission’s complaint prohibits Rytr from engaging in similar illegal conduct in the future. It also bars the company from advertising, promoting, marketing, or selling any service dedicated to – or promoted as – generating consumer reviews or testimonials.
Following a public comment period, the Commission voted 3-2 to approve the final consent order and letters to eight public commenters. Commissioners Melissa Holyoak and Andrew Ferguson previously issued separate dissenting statements.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Categoría:Reports
Tags: Sin tags
País: United States
Región: North America
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