National Law Review
7/10/2026

FTC Seeks Comment on AI Policy Statement
Short summary
The FTC proposed a policy statement warning AI companies against deceptive practices—making false claims about AI accuracy or reliability, or hiding changes to outputs inconsistent with stated capabilities. Companies must disclose when AI systems prioritize different objectives than users expect, or face potential Section 5 FTC Act violations.
- •FTC targets undisclosed misalignment between AI system outputs and stated capabilities
- •Companies must clearly disclose when AI prioritizes different objectives than users expect
- •AI products remain subject to traditional consumer protection standards; enforcement is active
Generated with AI, which can make mistakes.
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