FTC's Policy Statement On “Suppression Of Accuracy” In AI Systems Tak…

The FTC published a policy statement on 7 July 2026 declaring that AI companies which suppress system accuracy without disclosure—whether for ideological reasons, state law compliance, or other undisclosed objectives—violate Section 5 of the FTC Act as deceptive practices. The statement applies to foundation model developers, application builders, and enterprise users, establishes a disclosure safe harbour, and signals a theory of federal preemption over conflicting state AI laws. If you modify your model's outputs to comply with a state AI law without disclosing it, the FTC will prosecute you for deception—regardless of the reason. Disclose the trade-off in plain language now, or you're exposed.