COLORADO — The Federal Trade Commission has proposed a policy statement regarding the regulation of artificial intelligence companies. The public can submit comments on the proposed policy through July 31.

The FTC stated that the policy addresses concerns that artificial intelligence companies distorting system outputs for undisclosed ideological objectives could violate federal law by deceiving consumers. Federal Trade Commission Chairman Andrew N. Ferguson said, "The FTC wants to hear from businesses and consumers about their experiences and concerns regarding the subversion of AI systems for ideological ends."

The proposed statement follows an executive order issued by President Donald Trump in December 2025. This executive order targeted state artificial intelligence laws and directed the FTC to issue a policy statement on the regulation of state laws that require alterations to the truthful outputs of artificial intelligence models. The order also established a Department of Justice AI Litigation Task Force to challenge state artificial intelligence laws.

The FTC proposal references a Colorado law that had previously banned algorithmic discrimination. However, the Colorado legislature repealed this provision of state law. The revised Colorado law now focuses on regulating technology that leads to consequential decisions for consumers. xAI filed a lawsuit against the initial Colorado law, receiving support from the U.S. Department of Justice.

Lawyer Tyler Thompson commented, "Just the fact that companies could be tweaking their models and that could lead to a deceptive trade practice, I think is huge news." Consultant Noah M. Kenney said, "The real effect of this statement is signaling and pressure, not legal preemption, especially paired with the December executive order's AI litigation task force." Kenney also stated, "A federal effort to dictate what counts as a 'neutral' or 'accurate' output raises its own First Amendment concerns about compelled speech."