Wrong

Y'see, everyone thought that with equality that'd bring unity, and nothing is farther from the truth. In an attempt to curb misinformation from harming us again, all forms of educational media was required to be thoroughly checked. And in doing so, the previous leaders managed to tag on a law where we all needed to be held accountable for any spread of misinformation. They chipped us all with lie detectors to ensure we tell the truth and never withhold information.

The problem wasn't the massive breach of privacy that came with the chips. It was the fact the chips were fallible. The purpose of the chip is to determine based on pulse whether you were telling the truth, and some people tend to shut up quick to avoid getting in trouble, which then makes them guilty by omission. But what it doesn't prevent is half-truths. The truth isn't necessarily set in stone, if anyone is sneaky enough and can avoid the questioning, if they can manipulate events or circumstances to a desired outcome, people will take it as truth.

Example:
Person A: Did you read those files in my office?
Person B: No, I did not read those files in your office.
See what I mean? Person B read the files, just not in that office

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Lies

Image from: https://giphy.com/gifs/reaction-mood-A7Zc53i8U59SHv9CAm
and:
https://giphy.com/gifs/futurama-devil-EXFH1GOYSKKqc