The Federal Trade Commission published a policy statement on artificial intelligence in the Federal Register on July 7. Public comments are due July 31. Formally, the policy statement addresses application of section 5 of the FTC Act “to companies that market AI systems.” Section 5 prohibits unfair and deceptive practices in the marketplace. Every state has a law modeled on Section 5. Yet, much of the FTC’s policy statement argues for federal preemption of state AI laws, and specifically mentions Colorado’s Artificial Intelligence Act. The policy contends that state laws that require certain changes to companies’ AI models may conflict with the FTC Act. The FTC’s policy statement is issued in response to an Executive Order that seeks a national policy on AI and blocks state regulation and protections.
