The Federal Trade Commission has issued a proposed policy statement treating the deliberate suppression of accurate AI outputs as a deceptive practice under Section 5 of the FTC Act, applicable when companies market their systems as delivering the best possible answers. The statement specifically addresses state laws such as Colorado’s AI Act, arguing that state-mandated alterations to AI outputs do not shield companies from federal scrutiny. Under the proposed policy, companies may prioritize objectives other than pure accuracy only if they make prominent, unambiguous disclosures rather than burying them in terms of service. The FTC is accepting public comments on the proposal through July 31, 2026.
