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US FTC says AI bias safeguards may run afoul of consumer law

By Thomson Reuters Jul 1, 2026 | 2:09 PM

By Courtney Rozen and Jody Godoy

WASHINGTON, July 1 (Reuters) – The Federal Trade Commission on Wednesday said AI companies whose chatbots produce ​responses that reflect “ideological objectives” may violate ‌federal law, as part of a proposed policy on how the FTC will apply its authority to the sector.

The FTC said AI companies that train their chatbots ‌to ​avoid responses that discriminate against ⁠specific groups of people ⁠may run afoul of the Federal Trade Act’s Section 5. The law prohibits unfair or deceptive business practices.

Complying with a Colorado law ​aimed at preventing AI-driven discrimination in employment and other consequential decisions could violate the FTC ⁠Act, the agency said.

U.S. ⁠President Donald Trump and other conservatives ​have accused AI chatbots of being politically biased against ​them. This is the latest example of ‌conservatives aiming to use the power of the federal government to prevent that.

The FTC will accept public comment on the proposed policy until ⁠July 31.

FTC Chairman Andrew Ferguson has used the FTC’s authority to police unfair and deceptive practices in other ⁠cases aimed ‌at addressing conservative grievances, including a ⁠case against a transgender health nonprofit.

AI ​chatbot ‌developers Anthropic and OpenAI did not ​immediately respond ⁠to a request from Reuters for comment on the FTC’s proposal. Alphabet’s Google declined to comment.

(Reporting by Courtney Rozen in Washington and Jody Godoy in New York; Editing by Chizu Nomiyama and ​Mark Porter)