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

FTC Chairman Andrew N Ferguson raises concerns about certain AI companies. The proposed FTC policy addresses misleading practices and potential legal actions against companies.

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 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.

Sounak Mukhopadhyay