US FTC proposes rule to curb state AI laws seen as ideologically biased

The Trump administration is advancing a Federal Trade Commission (FTC) policy proposal aimed at countering state artificial‑intelligence regulations that it says push undisclosed ideological agendas. Open for public comment until July 31, the statement would allow the FTC to pursue deceptive‑practice claims against companies that alter AI outputs to achieve political or ideological objectives. The proposal references Colorado’s former “algorithmic discrimination” law, now revised to focus on “consequential decisions” affecting consumers, and notes the Department of Justice’s support for a lawsuit filed by Elon Musk’s xAI.

The effort follows a December 2025 executive order that created a DOJ AI Litigation Task Force and directed the FTC to address state laws requiring modifications to truthful AI model outputs. Legal experts say the move could reshape how AI systems are tuned and regulated, potentially extending to areas such as deepfakes, non‑consensual sexual content, child safety, and AI‑powered chatbots.