The Federal Trade Commission announced on July 1, 2026 that it is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating the behavior of their AI systems in ways that conflict with reasonable consumer expectations for objectivity and accuracy. The proposed statement describes how AI companies that distort their systems’ outputs to achieve undisclosed ideological objectives could be deceiving consumers in violation of Section 5 of the FTC Act, which prohibits businesses from engaging in “unfair or deceptive” conduct. The public will have until July 31, 2026 to submit comments. The Commission vote authorizing the Federal Register notice was 2-0.
Chairman’s Statement
Chairman Andrew N. Ferguson said: “The FTC wants to hear from businesses and consumers about their experiences and concerns regarding the subversion of AI systems for ideological ends. This crucial input will help the Commission formulate a final policy that advances President Donald Trump’s goal of expanding America’s global dominance in artificial intelligence.”
State Law Preemption Concerns
The proposed policy statement also addresses the legal implications of state laws that require alteration of the “truthful outputs of AI models.” The statement cites Colorado’s Artificial Intelligence Act as an example of a state law that appears to coerce companies into altering the output of their AI models to comply with and advance the state’s ideological objectives. The Commission stated that such state-law compulsion may itself run counter to consumers’ reasonable expectations about the effectiveness and suitability of AI systems for various tasks.
(Source tag: Federal Trade Commission Press Release)