The statement also challenges state-level AI regulation, arguing that Colorado's Artificial Intelligence Act is preempted by federal law to the extent it coerces companies to alter AI outputs for state ideological objectives. The policy stems from a December 2025 executive order directing the FTC to address the legal implications of state laws requiring alteration of "truthful outputs" from AI models. The details of how the FTC will define and enforce these standards remain unclear and will likely be shaped by public comment.
Attorneys should monitor this closely as a significant shift in federal AI governance. The FTC is explicitly framing output manipulation as a consumer deception issue, not merely an accuracy problem—a distinction that broadens potential enforcement theories. The statement also signals federal preemption of state AI regulation, which will matter for companies operating across multiple jurisdictions. The final policy, due after the July 31 comment deadline, will likely establish the framework for FTC enforcement actions against AI companies for years to come.