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FTC AI Accuracy Policy Statement

FTC Policy Statement Concerning the Suppression of Accuracy in Artificial Intelligence Systems (Proposed)

Proposed FTC enforcement policy stating that steering AI system outputs toward undisclosed objectives, contrary to users' reasonable expectations of accuracy and objectivity, is likely a deceptive practice under Section 5 of the FTC Act - including where the steering is done to comply with state AI laws.

Jurisdiction

United States

Enacted

Pending

Effective

TBD

Enforcement

Federal Trade Commission

Proposed policy statement published for public comment July 7, 2026 (91 Fed. Reg. 41638; Docket FTC-2026-0859, Matter No. P264200). Comment period closed July 31, 2026; awaiting final Commission action.

Federal Register (GovInfo)

Why It Matters

First FTC policy statement squarely addressing accuracy and output-steering in AI systems; it positions federal deception authority as a counterweight to state AI output requirements, making it a key instrument in the federal-state AI preemption dispute.

Recent Developments

Issued pursuant to Executive Order 14365 (December 11, 2025), which directed the FTC to address how state laws requiring alteration of AI outputs may conflict with the FTC Act; the statement cites Colorado's revised AI Act as an example of such a law. Comment period closed July 31, 2026.

At a Glance

Applies to

Foundation ModelGeneral ChatbotChatbot Service

Harms addressed

Requires

Who Must Comply

  • AI system developers and providers making explicit or implicit representations about output accuracy or objectivity
  • Chatbot and generative AI operators

Safety Provisions

  • Treats undisclosed ideological or commercial steering of AI outputs as potentially deceptive under FTC Act Section 5
  • States that compliance with a state law requiring alteration of accurate outputs is not a defense to a Section 5 deception charge
  • Distinguishes deceptive steering from AI hallucinations (incorrect outputs from technical limitations, outside scope), while noting that misrepresenting the likelihood of hallucinations could itself be deceptive

Compliance & Enforcement

Penalties

Enforcement under FTC Act Section 5 (unfair or deceptive acts or practices); the policy statement creates no new penalty structure.

View on map

United States

Focus Areas

Algorithmic accountability

Cite This

APA

United States. (n.d.). FTC Policy Statement Concerning the Suppression of Accuracy in Artificial Intelligence Systems (Proposed).

Related Regulations

Proposed US

NO FAKES Act

Creates federal intellectual property protection for individuals' voice and visual likeness against unauthorized AI-generated digital replicas. Holds companies liable for producing, hosting, or sharing non-consensual digital replicas.

In Effect US

FTC AI Actions

FTC applies Section 5 authority against unfair/deceptive AI practices, plus AI-specific rules including the Fake Reviews Rule (Oct 2024) prohibiting AI-generated fake reviews.

Enacted EU

EU PLD

Modernized product liability framework explicitly covering AI systems and software as products. Shifts burden of proof in complex AI cases, allows disclosure orders for technical documentation, and addresses liability for AI-caused harm including through software updates.

In Effect IN

India Synthetic Media Rules

Would establish due diligence framework for synthetically generated information including labeling, traceability, and platform processes for handling synthetic media harms.

In Effect CN

China GenAI Labeling Rules

Mandatory labeling of AI-generated content (implicit for all, explicit where applicable). Released by State Administration for Market Regulation and Standardization Administration of China. Complements existing GenAI interim measures with three national standards for AI security and governance.

In Effect US-TX

TX AI Catfishing Law

Establishes civil liability for online impersonation using AI. Person liable if they knowingly and with intent to harm, defraud, intimidate, or threaten use AI to impersonate another's name, voice, signature, photograph, or likeness. Civil remedies include injunctive relief, actual damages, exemplary damages ($500+ minimum), costs, and attorney's fees. Satire and parody exempted.

Last updated August 3, 2026. Verify against primary sources before relying on this information.