Caught Between Scylla and Charybdis: The FTC Targets ‘Suppression of Accuracy’ In AI Systems, Catching Companies in a Classical Conundrum for the Modern Age

Attorneys Leslie Bender and Michael Bahar examine the FTC’s recently proposed policy statement on the "suppression of accuracy" in AI systems. They examine its implications for companies balancing state AI regulatory compliance obligations with evolving federal priorities, including the potential for companies’ state-law-compliant conduct to be viewed under federal law as an unfair or deceptive act or practice.

Their analysis highlights how the FTC's proposal may reflect a growing federal policy priority: encouraging innovation while discouraging state regulatory approaches that could create barriers to developing, deploying, and adopting AI technologies, plus more.

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