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FTC Seeks Public Comment on Policy Statement Addressing AI Accuracy

Federal Trade CommissionJuly 1, 2026Federal Trade Commission

Summary

The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.

Contract Impact

In-house legal teams should review vendor agreements related to AI systems, particularly clauses governing AI output accuracy, objectivity, and compliance with consumer protection laws. Contracts with AI developers and providers should include representations that AI outputs will not be manipulated for undisclosed ideological purposes. Additionally, teams should assess any state-specific AI law compliance obligations, such as those under the Colorado Artificial Intelligence Act, and ensure contracts address potential preemption by federal law. Customer-facing agreements may need updates to disclose any limitations on AI objectivity.

Contract Search Terms

AI accuracyAI output manipulationdeceptive AI practicesFTC Act Section 5ideological bias in AIstate AI laws preemptionColorado Artificial Intelligence Actconsumer expectations AI

Laws Cited

15 U.S.C. 45

Violation Types

Entity Details

Entity

Federal Trade Commission

Industry

Other

Official Sources

Source Evidence

Entity Name
"Federal Trade Commission"
Laws Cited
"Section 5 of the FTC Act"
Violation Types
"AI companies that distort their systems’ outputs to achieve undisclosed ideological objectives could be deceiving consumers"
Event Type
"proposed policy statement"

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