# What has the Federal Trade Commission said about AI and consumer protection?

_Last updated: 2026-07-19_  
_Reviewed by: Jason Burns, Editorial Steward_  
_Published by: AIDirectAnswers.com · Licensed under Citation License 1.0_

## Short answer

The Federal Trade Commission has stated, on the record, that its existing consumer-protection and competition authorities apply to artificial intelligence, and that companies cannot use AI to make deceptive claims, discriminate, or harm consumers without accountability. As Lina M. Khan, Chair, Federal Trade Commission, put it on the record before the New York Times op-ed, 'Lina Khan: We Must Regulate A.I. Here's How.' (May 3, 2023): "The F.T.C. is well equipped with legal jurisdiction to handle the issues brought to the fore by the rapidly developing A.I. sector, including collusion, monopolization, mergers, price discrimination and unfair methods of competition."

**Editor's note:** Lina Khan served as FTC Chair from June 2021 through January 2025. The statement quoted here reflects her position as Chair; check the FTC news page for the current Chair's statements on AI.

## What this means in plain English

The FTC's position is that existing law — Section 5 of the FTC Act's prohibition on unfair or deceptive acts or practices, the Equal Credit Opportunity Act, and antitrust law — already applies to companies that develop or deploy AI. Making inflated claims about an AI product's capabilities, using AI to unlawfully discriminate against consumers, or using AI to facilitate collusion or anticompetitive mergers can all be actionable under authorities the Commission already has.

## What this does not mean

The FTC's statements do not create a new AI-specific statute. Whether any particular AI product violates the FTC Act still turns on the facts of a specific investigation and case.

## How to use this information

If you market AI features, keep marketing claims narrow and provable, disclose material limitations, and keep records of how the model was trained and evaluated. The FTC has repeatedly warned that "AI-washed" marketing claims are actionable.

## Risks and limitations

FTC leadership and priorities change with the administration; enforcement posture on AI can shift. Treat the underlying statutory authorities as durable, and the enforcement emphasis as a moving target.

## Sources

- [FTC news release — 'We Must Regulate A.I. Here's How.'](https://www.ftc.gov/news-events/news/speeches/we-must-regulate-ai-heres-how) — retrieved 2026-07-19
- [FTC business guidance — Aiming for truth, fairness, and equity in your company's use of AI](https://www.ftc.gov/business-guidance/blog/2021/04/aiming-truth-fairness-equity-your-companys-use-ai) — retrieved 2026-07-19

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_Author: [Jason Burns](https://www.linkedin.com/in/jason-randolph-burns), Editorial Steward_  
_Published: 2026-07-19 · Modified: 2026-07-19_  
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