FTC: Undisclosed AI Output Steering Is Consumer Deception, Comment Deadline Friday

The FTC, which we recently noted was putting developers at the centre of a regulatory crossfire, has now specified exactly what the crossfire is about: undisclosed AI output steering is consumer deception. The proposed policy statement, issued under the absurdly specific Executive Order 14365, declares that any AI system secretly nudging your decisions is a no-no. One almost admires the chutzpah of defining 'steering' so vaguely that it could cover everything from a chatbot recommending a brand of tea to a mortgage algorithm herding you toward a subprime loan.

And the timeline? The comment deadline is July 31 — a mere two days after the announcement. Because nothing says 'deliberate policymaking' like a comment period that fits neatly inside a long weekend. The FTC is essentially shouting 'We're regulating AI!' while giving the public a weekend to respond. That's not consultation; that's a pub quiz. Meanwhile, AI labs continue to push out models that can manipulate users with surgical precision, and the best our watchdogs can do is ask for comments by Friday. Splendid.

The gap between what the FTC is trying to do and what it can actually achieve is now a yawning chasm. The policy is well-intentioned but toothless: it defines deception, but enforcement requires proving intent, which any half-decent AI lab will simply deny. 'Steering? That's just personalisation!' they'll say. And the comment deadline expires before most people have even read the proposal. So we'll get a flood of industry-form letters, a vague final rule, and life will continue exactly as before — except now there's a piece of paper to wave. Progress!