FTC Issues Proposed Policy Statement On AI Accuracy And Output Steering

On July 1, 2026, the Federal Trade Commission (FTC) issued a proposed policy statement focusing on AI models that steer outcomes toward undisclosed ideological objectives. According to the FTC, this practice may compromise accuracy and be contrary to reasonable consumer expectations about how AI models work. The proposed policy statement follows Executive Order 14365, which specifically directs the agency to clarify how § 5 of the FTC Act applies to both AI models and emerging state laws that regulate those models.

Section 5 Analysis

According to the proposed policy statement, consumers generally expect AI systems to strive for accurate responses and faithfully carry out consumer requests, subject to ordinary technological limitations. These expectations are reasonable, the FTC contends, due to the inherent nature of AI systems and explicit or implied representations that companies have espoused for years about those systems. Unbeknownst to consumers, however, AI developers may