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

In consultationGuidelineNon-binding

Proposed FTC policy statement on how Section 5's ban on deceptive practices applies to companies marketing AI systems, focusing on undisclosed steering or distortion of AI outputs. It takes the position that complying with a state law does not excuse undisclosed distortion of outputs and that state laws requiring such conduct may be preempted.

Why it matters

AI providers that tune outputs (e.g. for bias mitigation required by state law) without disclosure could face FTC deception claims, and the statement is the administration's main preemption theory against state 'algorithmic discrimination' laws.

What it requires

Transparency to users

SourceFederal Register: https://www.federalregister.gov/documents/2026/07/07/2026-13628/policy-statement-concerning-the-suppression-of-accuracy-in-artificial-intelligence-systems Secondary: https://www.arnoldporter.com/en/perspectives/blogs/major-questions-an-administrative-law-and-regulatory-blog/2026/07/ftcs-proposed-policy-statement-on-ai-accuracy-and-preemption-of-state-ai-laws Checked against the source on 4 Oct 2026. Issued under section 7 of EO 14365 (due 11 Mar 2026; published 7 Jul 2026, 91 FR 41638, File No. P264200). Comments closed 31 Jul 2026; no final statement located as of 2026-10-04.

Cite this record

Policy Statement Concerning the Suppression of Accuracy in Artificial Intelligence Systems (proposed). Federal Trade Commission (FTC). Status: In consultation. wheresthe.ai, https://wheresthe.ai/rule/us-ftc-ai-accuracy-policy-statement-2026/ (verified 4 Oct 2026).