On 1 July 2026, the U.S. Federal Trade Commission (FTC) published a proposed policy statement for public consultation addressing the suppression of accuracy in artificial intelligence systems. The proposal examines whether certain practices that intentionally reduce or manipulate the accuracy of AI-generated outputs may constitute unfair or deceptive acts or practices under Section 5 of the FTC Act.
According to the FTC, concerns may arise where AI systems are intentionally designed or configured to suppress accurate information, steer users towards preferred outcomes, or present less accurate responses without adequate disclosure. The proposed policy statement emphasises that consumer protection risks may extend beyond inaccurate AI outputs themselves to include design choices that affect the reliability of the information consumers receive. Through the consultation, the FTC seeks feedback on how existing consumer protection principles should apply to such practices in the context of artificial intelligence.
The proposal follows the FTC’s broader efforts to address potentially misleading practices involving artificial intelligence. In September 2024, the Commission announced enforcement action against Rytr, an AI-powered writing assistant, alleging that the company promoted a tool capable of generating fake consumer reviews that could be used deceptively in online marketplaces. Together, these developments illustrate the FTC’s increasing focus on the ways AI systems are designed, marketed and deployed, rather than solely on the outputs they produce.
The proposed policy statement indicates that consumer protection considerations relating to artificial intelligence are continuing to evolve alongside advances in AI technology. As AI-powered services become more widely integrated into everyday products and services, regulatory attention is increasingly extending beyond the accuracy of AI-generated content to the design choices that may influence the information ultimately presented to consumers.
