The Federal Trade Commission is seeking public comment on addressing concerns that AI companies may be manipulating the behavior of their AI systems contrary to reasonable consumer expectations for objectivity and accuracy, officials said.
As the proposed policy statement explains, the FTC Act prohibits businesses from engaging in “unfair or deceptive” conduct. The proposed statement goes on to describe how AI companies that distort their systems’ outputs to achieve undisclosed ideological objectives could be deceiving consumers in violation Section 5 of the FTC Act. Such conduct, it explains, may be at odds with explicit and implicit representations made to consumers about the effectiveness and suitability of AI systems for various tasks.
“The FTC wants to hear from businesses and consumers about their experiences and concerns regarding the subversion of AI systems for ideological ends,” said Chairman Andrew N. Ferguson. “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.”
Some state laws seek to impose their own patchwork of regulations on AI. Colorado’s Artificial Intelligence Act, for instance, appears to coerce companies into altering the output of their AI models to comply with and advance the state’s ideological objectives. The Commission’s proposed policy statement explains that such a law is “impliedly preempted to the extent it conflicts with a federal regulatory scheme.”
In a December executive order, President Trump directed the FTC to issue a policy statement addressing the legal implications of state laws that require alteration of the “truthful outputs of AI models.”
The proposed policy statement will be published in the Federal Register. The public will have until July 31, 2026, to submit comments on the policy statement. Once processed, comments will be posted on Regulations.gov. The Commission vote authorizing the Federal Register notice was 2-0.
The Federal Trade Commission works to promote competition, and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov. Follow the FTC on social media, read our blogs and subscribe to press releases for the latest FTC news and resources.
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