FTC Reverses Rytr Consent Order Amid Push for Federal AI Standards
On December 22, 2025, the Federal Trade Commission (FTC) made a significant decision to set aside its 2024 consent order against Rytr, a company specializing in generative AI. This reversal came after the FTC concluded that the original complaint “failed to satisfy the legal requirements of the FTC Act” and that the consent order posed an undue burden on AI innovation.
This decision aligns with the priorities outlined in the Trump Administration’s January 2025 AI Executive Order and America’s AI Action Plan, both of which emphasize the importance of fostering the adoption of artificial intelligence technologies.
Background: The 2024 Rytr Consent Order
In September 2024, the FTC initiated an administrative complaint against Rytr as part of its broader enforcement initiative known as “Operation AI Comply”. This operation aimed to ensure compliance with existing regulations concerning AI technologies.
The reversal of the consent order highlights a growing recognition of the need for a balanced regulatory approach that promotes innovation while safeguarding consumer interests. The FTC’s decision reflects a commitment to reassess regulatory measures in the context of rapidly evolving AI capabilities, ensuring that the regulatory framework supports rather than stifles technological advancement.
