EPIC urges FTC to Abandon Misleading Guidance Suggesting Consumer Protection Laws. Preempt State AI Regulations

On Friday, EPIC submitted comments urging the FTC to rescind its recent policy statement on AI regulations, which falsely suggests that companies could violate federal consumer protection law by complying with state AI laws. 

The policy statement is an impermissible attempt by the Agency to halt laws that state legislators have enacted to protect consumers from AI-powered harms. The FTC failed to demonstrate how companies’ compliance with state laws constitutes a deceptive practice and lacks authority to preempt state laws. 

Complying with laws passed to protect consumers from AI harms is not deceptive, and, in fact, much of the conduct that these state laws seek to regulate is more likely to meet Section 5’s standard for deceptive acts and practices. 

“The FTC does not have the authority to preempt state law by taking on a senseless, politically charged interpretation of its authority under Section 5 of the FTC Act to regulate unfair and deceptive practices.,” EPIC’s comments read. 

EPIC frequently files comments before the FTC urging the Commission to uphold its obligation to protect consumers from data-driven harms.