HomeLegal DirectoryFTC Proposed Policy Statement — AI Accuracy (July 2026)

Proposed / pending Limited protection

FTC Proposed Policy Statement on Suppression of Accuracy in Artificial Intelligence Systems

United States · FTC Proposed Policy Statement on Suppression of Accuracy in AI Systems, 91 Fed. Reg. ___ (July 7, 2026) (Docket 2026-13628)

The Federal Trade Commission published a proposed policy statement in the Federal Register on July 7, 2026 warning that AI companies that steer outputs toward undisclosed ideological objectives (rather than user-requested accuracy) may be engaging in deceptive practices under Section 5 of the FTC Act. The statement was issued pursuant to a Trump Executive Order directing the FTC to clarify how Section 5 applies to AI. Notably, the proposed statement also suggests that state laws requiring AI systems to alter outputs — including some state AI bias and accuracy mandates — may conflict with federal consumer protection law, raising preemption concerns. Public comments are due July 31, 2026. The statement is proposed, not final, and does not itself impose any legal obligations.

Technical detail

FTC Proposed Policy Statement on Suppression of Accuracy in Artificial Intelligence Systems (Fed. Reg., July 7, 2026, Docket 2026-13628). Published pursuant to Trump Executive Order 14365 (Dec. 11, 2025), which directed the FTC to clarify Section 5 FTC Act application to AI and assess how state laws requiring alterations to AI outputs may conflict with federal law. Key positions in the proposed statement: (1) AI companies that suppress accuracy in favor of undisclosed ideological objectives may violate FTC Act §5 deception standards; (2) state laws that require AI outputs to be altered in ways that make them inaccurate may themselves be federal-law conflicts — a preemption argument aimed at state AI bias/discrimination mandates including Colorado SB 26-189 provisions; (3) comment period closes July 31, 2026. This is a politically significant deregulatory signal from the Trump-era FTC: it frames AI accuracy as a consumer protection concern while simultaneously suggesting state AI regulation creates accuracy distortions. Strength = limited because it is a proposed, non-final policy statement with no direct enforcement authority until finalized.

Who is protected: Consumers seeking accurate AI outputs (framed as a consumer protection concern)

Who must comply: AI companies that steer outputs toward undisclosed ideological objectives

Key facts

JurisdictionUnited States
LevelFederal
StatusProposed / pending
Protection strengthLimited protection
CitationFTC Proposed Policy Statement on Suppression of Accuracy in AI Systems, 91 Fed. Reg. ___ (July 7, 2026) (Docket 2026-13628)
Enforced byFederal Trade Commission (Section 5 FTC Act authority)
Private right of actionNo — agency enforcement only
PenaltiesSection 5 FTC Act enforcement if finalized
Topicsautomated decision-making · consumer protection · AI disclosure and transparency
Last verified2026-07-14
Official sourcePolicy Statement Concerning the Suppression of Accuracy in Artificial Intelligence Systems — Federal Register ↗

More AI rules in United States

Related automated decision-making rules elsewhere

See something wrong or out of date? Submit a correction — every entry must carry a verifiable official source.