FTC Act Section 5 — deceptive AI practices
United States (federal) · 15 U.S.C. § 45; FTC guidance on AI claims (2023–2026) · effective 1914-09-26
Summary
The Federal Trade Commission treats leading consumers to believe they are dealing with a human, when that fact would matter to their decision, as a deceptive practice. The FTC has said failure to disclose AI can be deceptive regardless of intent, and its 2026 guidance recommends disclosure before substantive interaction.
Who must comply
Every business engaged in commerce in the United States.
What you must disclose
Do not mislead consumers about whether they are interacting with a human or about what your AI can do.
When: Before the consumer relies on the interaction; practically, at the start of a conversation.
Other duties
- Substantiate any claims you make about your AI's capabilities.
- Keep records showing what disclosures were made and when.
Exemptions
- No formal exemption; materiality to the consumer's decision is the test.
Penalties
Injunctions, consumer redress, and civil penalties for rule or order violations (over $50,000 per violation as adjusted for inflation).
Enforced by: Federal Trade Commission; state attorneys general under parallel state UDAP laws.
Triggered by
Sources
Last reviewed 2026-09-09. Not legal advice.
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