The FTC wants your AI to tell the truth (And say so if it doesn't): What the new proposed policy statement means for your business

On July 1, 2026, the Federal Trade Commission (FTC) published a proposed policy statement addressing whether AI companies violate Section 5 of the FTC Act’s prohibition on deceptive acts or practices when the companies direct their systems’ outputs toward hidden ideological objectives instead of the outcomes the consumer actually requests or reasonably expects. The public comment period closes on July 31, 2026.... By: McDonald Hopkins