FTC staff guidance 'Keep Your AI Claims in Check' (2023) and FTC enforcement against deceptive AI claims

Summary

On February 27, 2023 FTC advertising staff published a business blog post warning that claims about AI products must be truthful and substantiated, for example that a product does not exaggerate what it can do. Under the current Commission the FTC continues to treat misrepresented AI capabilities as deception, but on December 22, 2025 it reopened and set aside its 2024 Rytr consent order, finding the complaint did not support a Section 5 violation and that the order unduly burdened AI innovation. It was the first FTC action under the July 2025 AI Action Plan's direction to review FTC orders that burden AI innovation. The original blog post now returns a 404 on ftc.gov.

Key dates

1. February 27, 2023Issued
2. October 16, 2026Checked against sources
3. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: January 15, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. Today, the Federal Trade Commission issued an order to reopen and set aside a 2024 final consent order involving Rytr LLC.

   Supports: Rytr order set aside

   December 22, 2025

   Supports: Date

   FTC Reopens and Sets Aside Rytr Final Order in Response to the Trump Administration's AI Action Plan Federal Trade Commission Primary source

2. This is the first FTC action to implement the AI Action Plan, which directed the agency to review "all FTC final orders, consent decrees, and injunctions,"

   Supports: AI Action Plan review

   the FTC should police AI providers using the agency's well-established deception authority—such as when companies misrepresent their AI capabilities.

   Supports: Deception-based posture

   FTC Sets Aside Rytr Final Order Pursuant to White House AI Action Plan Covington & Burling (Inside Privacy) Reporting or analysis

3. On February 27, 2023, the US Federal Trade Commission (FTC) published new Business Blog guidance from Division of Advertising Practices staff about marketing claims for artificial intelligence products.

   Supports: Blog post date and nature

   FTC Warns to 'Keep Your AI Claims in Check' in New AI Guidance Cooley Reporting or analysis