This page covers U.S. law as of June 2026. This is not legal advice. For a plain-English compliance answer tailored to your situation, use the Compliance Checker at DiscloseAI.net.
The FTC does not have a standalone AI disclosure statute. It enforces existing authority under FTC Act Section 5, which prohibits unfair or deceptive acts or practices, against deceptive AI use. The FTC has also updated its Endorsement Guides to address AI-generated reviews. Violating these standards exposes businesses to FTC enforcement and civil penalties up to $51,744 per violation.
FTC Act Section 5 — The Core Authority
Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45) prohibits "unfair or deceptive acts or practices in or affecting commerce." The FTC has broad authority to apply this prohibition to AI-related conduct without needing a new AI-specific statute.
A representation or omission is deceptive when it: (1) is likely to mislead a consumer acting reasonably in the circumstances, and (2) is material — meaning it is likely to affect the consumer's conduct or decision. Failing to disclose AI use is deceptive when a reasonable consumer would want to know they are interacting with AI rather than a human, or when AI-generated content is presented as authentic human-created work.
FTC's 2023 AI Policy Statement
In June 2023, the FTC issued a policy statement affirming that its existing consumer protection authority applies fully to AI. The FTC identified the following AI-related practices as potential violations:
- Using AI to generate fake reviews or fabricate testimonials
- Deploying AI to impersonate humans in consumer interactions without disclosure
- Making false or unsubstantiated claims about AI capabilities
- Deploying AI that produces discriminatory outcomes in credit, housing, or employment
- Using AI to create deceptive synthetic media of real people
FTC Endorsement Guides — AI Reviews
The FTC's Endorsement Guides (16 C.F.R. Part 255), updated in August 2023, specifically address AI-generated reviews and endorsements:
- Businesses may not create, buy, or disseminate fake reviews, including AI-generated reviews, even if factually accurate — the inauthenticity itself is the deception
- If a business uses AI to generate consumer testimonials or reviews, this must be clearly disclosed
- AI-generated reviews that are not disclosed are considered materially misleading regardless of content accuracy
- Social media posts generated by AI on behalf of a business must disclose the AI's role when the AI generated or materially shaped the content
FTC Impersonation Rule
The FTC's Trade Regulation Rule on Impersonation of Government and Businesses (16 C.F.R. Part 461) was expanded in 2024 to address AI-generated impersonation of individuals. Civil penalties of up to $51,744 per violation (as adjusted for inflation) apply. AI voice cloning used to impersonate business representatives in consumer interactions without disclosure is covered.
What the FTC Does Not Require
- Using AI to draft internal documents or analyze data does not require consumer disclosure under FTC authority
- Using AI to optimize advertising targeting (without deception about the targeting itself) is not subject to an FTC disclosure requirement
- There is no FTC rule requiring a general "this business uses AI" disclosure on your website
- The FTC's authority is triggered by deception and unfairness — not by AI use itself