When the following setting is set to false, HTML entities in JSON response will not be encoded.
<%= %q{
ActiveSupport::escape_html_entities_in_json = false
} %>
Edit the html_entities file at config/initializers/html_entities.rb and set the following to true.
<%= %q{
ActiveSupport::escape_html_entities_in_json = true
} %>
Once the initializer is edited and the application is restarted, any HTML entities in JSON responses will be encoded.