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

July 20, 2026 / Source: FTC

July 1, 2026

An AI company might be tempted to alter or steer the output of its systems
contrary to consumers’ reasonable expectations for various reasons, including attempted compliance with a state law, such as Colorado’s recently revised Artificial Intelligence Act. But steering an AI system in this manner may deceive consumers in violation of Section 5 of the FTC
Act. That is true even if the deceptive steering is done in an effort to comply with state laws. Of course, a company may be able to avert potential deception by making truthful, non-misleading
representations about the aims of its model. But such representations would need to make clear that the AI company is prioritizing objectives different than those consumers requested or would otherwise expect.