The FTC’s Proposed Policy Statement Concerning The Suppression Of Accuracy In Artificial Intelligence Systems

On July 1, 2026, the Federal Trade Commission (FTC) issued a proposed policy statement addressing how Section 5 of the FTC Act applies to AI systems. The statement was issued pursuant to Executive Order 14365, signed by President Trump on December 11, 2025, which directed the FTC to clarify how its deception framework applies to AI models and to address potential conflicts between federal law and state laws requiring alterations to the accurate outputs of AI models. The statement reflects the current Administration’s broader goal of establishing a national AI regulatory framework that preempts state-by-state regulation.¹ The public comment period runs through July 31, 2026.

This is a proposed policy statement, not a binding regulation, which alone will not create new legal obligations. However, it provides a glimpse at how the Commission might apply its existing deception framework to AI systems, and companies developing or deploying AI products whose outputs reach consumers should