As AI increasingly becomes the “plastics” (the famous line in The Graduate) of this era, politicians and regulators are increasingly focused on enforcement of applicable standards while at the same time balancing the advancement of the technology.
On the federal side, on December 11, 2025, President Trump issued the Executive Order “Ensuring a National Policy Framework for Artificial Intelligence,” that grants the United States Attorney General to sue states of AI regulations that are inconsistent with the Order’s policy goals, including laws that can regulate interstate competition or are “unlawful in the Attorney General’s judgment.” To that end, the FTC just reversed a 2024 final consent order involving Rytr LLC, who offered an AI supported consumer review drafting tool that the FTC had alleged allowed users to create false and deceptive reviews. In reversing, the FTC found that the consent order “unduly burdens innovation in the nascent AI industry, [and] it is in the public interest to set it aside” even if it was utilized for unlawful purposes.
On the state side, thirty-six state attorneys general have opposed the Executive Order’s moratorium on state AI laws. Indeed, such laws continue to emerge such as in connection with transparency, consumer protection, child safety, and employment. Indeed, New York subsequently enacted a law aimed at regulating AI companies and requiring them to create, publish and follow safety protocols. The New York law is viewed as more restrictive than California’s Raise Act signed into law earlier in 2025.
How the federal/state battle will play out will be interesting to follow in 2026 and beyond.
PartnerMarketers, advertisers, agencies and suppliers, among others, regularly seek Andy’s counsel regarding legal aspects of their advertising and promotional marketing businesses. He’s pragmatic and always looks for ...