FTC Dismantles Khan's AI Enforcement Legacy
The Rytr reversal is just the beginning. Ferguson systematically unwinds Khan-era AI cases, abandoning the 'means and instrumentalities' liability theory that held companies responsible when tools enable deception. The FTC's fake review rule remains on the books but goes largely unenforced. State attorneys general step into the void, creating the exact patchwork regulation Trump's executive order aimed to prevent. AI companies operate with minimal federal oversight while navigating conflicting state requirements.
