Can a disclaimer protect a company that alters its AI's outputs?
Only if it's prominent and conspicuous at the point of use, according to the FTC's statement. The agency explicitly warns that a prominent misrepresentation — like marketing an AI as accurate — 'is unlikely to be remedied by a less prominent, subsequent disclosure,' meaning a line buried in terms of service won't satisfy Section 5.
Answered in
The FTC Just Picked a Fight With States Over What Counts as an AI 'Lie'The FTC's July 7 statement says state laws forcing AI models to alter true outputs may itself be deception. Comments close July 31, 2026.
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