FTC AI Guidance (2021)
FTC Business Guidance — Aiming for Truth, Fairness, and Equity in Your Company's Use of AI
United States · FTC Business Guidance (Apr. 19, 2021)
- Status
- In effect
- Took effect
- April 19, 2021
- Applies to
- All companies subject to FTC jurisdiction using AI
- Enforced by
- Federal Trade Commission
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.
Who is protected: Consumers from biased or deceptive AI
Legal 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).
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Strength | Limited |
| Enacted | April 19, 2021 |
| Citation | FTC Business Guidance (Apr. 19, 2021) |
| Private right of action | No, agency enforcement only |
| Penalties | FTC Act Sec. 5 + sectoral statute penalties |
| Topics | consumer protection · automated decision-making |
| Agency page | 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 tariffs on… · Enacted (not yet in effect)
- Chatrie v. United States (Fourth Amendment protection for location… · 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) · 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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