‘Everyone should be deeply suspicious’: FTC chairman raises concern about AI companies that…

Andrew N Ferguson, US Federal Trade Commission (FTC) chairman, has expressed concern about certain AI companies. According to him, "everyone should be deeply suspicious" about artificial intelligence companies that seek antitrust exemptions while supporting new regulations.

The FTC’s proposed AI policy earlier raised questions about bias and misleading promises. However, it is also argued that the FTC’s legal reach may be narrower than what its political language suggests.

The FTC released the proposal on 1 July 2026, well after its stipulated deadline. It highlighted AI’s economic importance and the administration’s aim of reducing barriers to innovation. It also outlined the commission’s powers against misleading business practices, including those involving new technologies.

The key issue concerns what companies promise about chatbots, rather than every answer chatbots produce. Under the proposal, companies could face action for misleading users about their systems’ political leanings.

For example, a company might promise neutrality while deliberately directing its chatbot towards liberal views. Such conflicting claims could attract action under rules against deception, according to Tech Policy Press.

According to the FTC’s July statement, AI companies may face legal action if they secretly shape answers around ideological goals. The FTC says such changes may mislead users expecting accurate and objective responses.

Its proposed policy focuses on promises companies make about their AI products. These promises may be clearly stated or suggested through how the products are presented.

The FTC Act bars unfair or deceptive business conduct under Section 5. FTC says undisclosed ideological changes could conflict with claims about an AI system’s usefulness. They may also undermine promises that the system suits particular tasks.

“The FTC wants to hear from businesses and consumers about their experiences and concerns regarding the subversion of AI systems for ideological ends,” Ferguson said at that time.

“This crucial input will help the Commission formulate a final policy that advances President Donald Trump’s goal of expanding America’s global dominance in artificial intelligence,” he added.

FTC sought feedback

The FTC then invited businesses and consumers to share their experiences and concerns. Chairman Ferguson said their feedback would help shape the final policy. He linked this exercise to President Donald Trump’s goal of strengthening America’s global AI leadership.

The proposal also questioned state rules that required companies to change AI responses. It singled out Colorado’s Artificial Intelligence Act, alleging that it promoted the state’s ideological aims.

The commission argued that conflicting state requirements could be overridden by federal regulation. This position concerns conflicts with federal rules, rather than every state law governing AI, it argued.