The Federal Trade Commission has opened a public comment period on a proposed policy statement examining whether AI companies could violate federal consumer protection law by altering model outputs in ways that conflict with their claims about accuracy and objectivity.
Approved by a 2-0 commission vote, the proposal says undisclosed efforts to shape AI responses around ideological goals may constitute unfair or deceptive conduct under Section 5 of the FTC Act. The agency is seeking input from businesses and consumers about how AI systems are marketed, how their outputs are modified, and whether those practices match reasonable user expectations.
The proposal also addresses state AI laws. The FTC argues that Colorado’s Artificial Intelligence Act may pressure companies to alter model outputs to comply with state policy goals and says conflicting state requirements could be preempted by a federal regulatory framework. That position has not yet been adopted as final commission policy.
President Donald Trump directed the FTC to examine the issue in a December executive order focused on state laws that require changes to what the administration calls the “truthful outputs” of AI models.
“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,” FTC Chairman Andrew N. Ferguson said.
Comments are due July 31, 2026. The proposed statement will be published in the Federal Register, and submitted comments will later appear on Regulations.gov.
