FTC Proposes Policy Statement on AI Accuracy and Ideological Manipulation of AI Outputs

The FTC released a proposed policy statement on July 1, 2026, arguing that AI companies which steer model outputs toward undisclosed ideological objectives may commit deception under Section 5 of the FTC Act, and opened a comment period through July 31. The statement was issued pursuant to Executive Order 14365 and distinguishes deliberate accuracy suppression from ordinary hallucinations, while flagging conflicts with state AI laws such as Colorado's.