SIIA Letter to FTC on Rytr Order

The Software & Information Industry Association (SIIA) urges the FTC to withdraw the proposed consent order against Rytr LLC, citing concerns that the action extends beyond the FTC's Section 5 authority. SIIA argues that this move could create a troubling precedent by imposing means and instrumentalities liability on AI tool providers, despite no evidence of actual harm. They highlight the FTC's traditional application of this liability to products inherently tied to deceptive practices, unlike Rytr's generative AI tool, which has both lawful and potentially unlawful uses.

SIIA also warns of the chilling effect this enforcement could have on the AI industry, potentially stifling innovation by penalizing providers of multi-use tools. SIIA advocates for a more targeted approach, focusing on harmful applications of AI rather than general-purpose tools. We urge the FTC to concentrate on clear-cut cases of fraud and deception, as seen in other Operation AI Comply actions, to maintain a balanced regulatory environment that supports AI's responsible development.