FTC Business Guidance — Aiming for Truth, Fairness, and Equity in Your Company's Use of AI
United States · FTC Business Guidance (Apr. 19, 2021)
FTC's foundational AI compliance blog warning that biased algorithms can violate FTC Act Sec. 5, FCRA, and ECOA. Sets the agency's enforcement posture on deceptive and unfair AI practices.
Technical detail
FTC business guidance signed by then-Bureau Chief Elisa Jillson: (1) start with the right foundation (training-data audits); (2) watch out for discriminatory outcomes; (3) be transparent; (4) tell the truth about AI; (5) do more good than harm; (6) hold yourself accountable. Cited in subsequent FTC enforcement actions including Rite Aid (facial recognition) and Weight Watchers (children's data).
Who is protected: Consumers from biased or deceptive AI
Who must comply: All companies subject to FTC jurisdiction using AI
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Limited protection |
| Effective date | 2021-04-19 |
| Enacted | 2021-04-19 |
| Citation | FTC Business Guidance (Apr. 19, 2021) |
| Enforced by | Federal Trade Commission |
| Private right of action | No — agency enforcement only |
| Penalties | FTC Act Sec. 5 + sectoral statute penalties |
| Topics | consumer protection · automated decision-making |
| Last verified | 2026-06-16 |
| Official source | Aiming for truth, fairness, and equity in your company's use of AI — FTC ↗ |
More AI rules in United States
- Trump AI Innovation & Security EO (June 2026) · In effect
- FERC order directing PJM and other grid operators to reform · Enacted (not yet in effect)
- Chatrie v. United States (Fourth Amendment protection for lo · Blocked / in litigation
- Kids Internet and Digital Safety Act (KIDS Act) (H.R. 7757) · Proposed / pending
- NAIC AI Evaluation Tool Pilot (12 states, 2026) · Proposed / pending
- FTC Proposed Policy Statement — AI Accuracy (July 2026) · Proposed / pending
Related consumer protection rules elsewhere
- Missouri AI Therapy Chatbot Ban (SB 1019) · Enacted (not yet in effect)
- Vermont Data Broker Law (H.211) · Enacted (not yet in effect)
- Arkansas Frank Broyles Act AI amendment — voice and likeness protection (2025) · In effect
- PA v. Character.AI (Fake Psychiatrist Chatbot) · Blocked / in litigation
- NAACP v. xAI (Colossus 2 Air Pollution) · Blocked / in litigation
- RI Therapy Chatbot Ban (2026) · In effect
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