{"id":1311,"date":"2026-08-04T21:09:02","date_gmt":"2026-08-04T21:09:02","guid":{"rendered":"https:\/\/smartmovinghome.com\/?p=1311"},"modified":"2026-08-04T21:09:02","modified_gmt":"2026-08-04T21:09:02","slug":"trumps-federal-trade-commission-is-threatening-to-punish-big-tech-for-woke-ai","status":"publish","type":"post","link":"https:\/\/smartmovinghome.com\/?p=1311","title":{"rendered":"Trump\u2019s Federal Trade Commission Is Threatening to Punish Big Tech for \u201cWoke AI\u201d"},"content":{"rendered":"
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Read more New Exhibit Imagines Emmett Till\u2019s Life If He Had Come Home Alive<\/a><\/p>\n<\/div>\n<\/div>\n

To understand the stakes of the debate over AI regulation, look no further than Minnesota, where tech oligarch Elon Musk is once again generating embarrassing headlines. <\/p>\n

Last week, a federal judge denied a request from Musk\u2019s artificial intelligence company xAI to block a Minnesota law banning nude deepfakes used to sexually harass women and girls from taking effect. Musk faced widespread backlash after Grok, one of xAI\u2019s signature products, introduced an AI feature that allowed users to digitally undress people in images circulating online. In March, three young girls sued xAI, alleging Grok was used to create child sexual abuse material. Minnesota Gov. Tim Walz called Musk a \u201ccreep.\u201d <\/p>\n

It\u2019s a bad look for Musk, but the lawsuit wasn\u2019t filed for applause. Musk and competing tech titans are currently spending immense political capital molding to their advantage the regulatory environment that AI companies are stepping into as the technology rapidly advances. The xAI lawsuit against Minnesota\u2019s ban on nude deepfakes is part of Musk\u2019s broader campaign against state regulation and so-called \u201cwoke AI.\u201d <\/p>\n

Musk has worked closely with President Donald Trump, who has issued multiple executive orders attempting to shape AI development and discourage regulation by individual states. In response to Trump\u2019s orders, the Federal Trade Commission (FTC) proposed a new policy in July that critics say would undermine the First Amendment and civil rights laws while potentially coercing companies into promoting white nationalist narratives with AI models that millions of people increasingly rely on for information. <\/p>\n

\u201cThis tech-Trump alliance \u2014 far from bringing expertise to responsibly guide policy on tech and AI \u2014 has only furthered the administration\u2019s corruption and enabled its campaign to censor and control our information ecosystem,\u201d said Shilpa Jindia, policy counsel at the digital rights group Free Press, in a statement on August 3. <\/p>\n

Free Press is one of several digital rights groups that recently submitted comments opposing a policy statement on \u201cAI accuracy\u201d proposed by the FTC, which is tasked with protecting consumers from deceptive advertising. Echoing comments by Musk and others on the right about \u201cwoke AI,\u201d the FTC statement claims AI companies may be required by state laws or simply \u201ctempted\u201d to train large language models (LLMs) such as Claude and ChatGPT to deliver \u201cideologically motivated distortions\u201d to consumers expecting objective answers to their questions. <\/p>\n

AI companies market their products as problem-solving tools that \u201cdistill all of human knowledge,\u201d so allowing such ideological \u201cdistortions\u201d may violate the federal law that created the FTC to protect consumers from deceptive advertising, according to the policy proposal. Using LLMs as a primary source of information is \u201cbecoming part and parcel of daily life,\u201d and the FTC could take legal action against companies that do not provide clear disclaimers about ideological \u201cdistortions\u201d in the answers AI models provide. <\/p>\n

\u201cAn adequate disclaimer could not be buried in terms of service, for instance,\u201d the FTC wrote.<\/p>\n

In an interview, Jindia said that behind the FTC\u2019s threat of legal action against AI companies lies the far right\u2019s obsession with diversity, equity, and inclusion (DEI). A broad pool of ideas originally developed by educators for addressing discrimination in schools and the workplace, DEI is now used as a smear by Republicans and fascist trolls to discredit any policy viewed as remotely anti-racist, pro-LGBTQ, pro-women, or progressive. <\/p>\n

\u201cThis began with Trump\u2019s executive order signed on day one against DEI, and it\u2019s under that guise they are going after AI outputs, or basically the content of AI,\u201d Jindia told Truthout. <\/em><\/p>\n

In March 2025, Trump controversially fired both Democratic members of the FTC, leaving two Republicans on what is supposed to be a bipartisan, five-member commission. Concerned that AI may suppress \u201caccuracy\u201d in the name of \u201cso-called equity,\u201d Trump\u2019s FTC warns that AI engineers may train their models on \u201cideologically motivated distortions\u201d to correct \u201cwhat the developer believes are \u2018historical injustices\u2019 in the facts.\u201d <\/p>\n

This recent policy statement is a dog whistle for culture warriors, insisting that all U.S. consumers must \u201cfeel their values are being respected\u201d by AI. <\/p>\n

Read more Eric Adams Booed While Lobbying for Data Center in Small Wisconsin Town<\/a><\/p>\n

Jindia said that language is a thinly veiled reference to the Black and Indigenous history the Trump administration has worked to systematically erase across all levels of the federal government. Trump\u2019s MAGA movement has censored books on racial justice and queer people in public school libraries while denying the reality of such historical injustices as slavery, segregation, and the mass displacement and slaughter of Native Americans \u2014 topics men such as Musk and Trump dismiss as \u201cwoke.\u201d <\/p>\n

\u201cIt\u2019s really a way for them to try to pressure private companies to suppress certain viewpoints, the viewpoints the Trump administration disagrees with, which is anything about diversity, equity, inclusion \u2014 and truth it wants to deny,\u201d Jindia said. <\/p>\n

Jindia is describing \u201cjawboning,\u201d or the use of public appeals or informal pressure by government officials to persuade private companies to take certain actions \u2014 often censoring or regulating speech. Republicans accused the Biden administration of free-speech violations after officials encouraged social media companies to enforce their own content moderation rules against disinformation about the COVID pandemic \u2014 a form of jawboning in service of public health \u2014 but now the Trump administration appears to be writing jawboning into official policy. <\/p>\n

John Coleman, the legislative counsel at the Foundation for Individual Rights and Expression (FIRE), a free-speech group to the right of Free Press, said the FTC\u2019s proposal risks giving the government power to control AI-generated expression in violation of the First Amendment. <\/p>\n

\u201cAI developers shape their systems through choices about training data, system prompts, alignment, and other design decisions \u2014 editorial judgments protected by the First Amendment,\u201d Coleman said in a July 31 statement. \u201cThe FTC\u2019s proposal assumes there is one \u2018best output\u2019 and one set of user expectations.\u201d <\/p>\n

The FTC claims authority to take legal action against AI companies that \u201cdeceive\u201d consumers with chatbots or LLMs under Section 5 of the FTC Act, which created the agency in 1914. However, FIRE\u2019s comment to the FTC points out that values and expectations held by individual consumers are not uniform, and people will likely choose AI models as they do news outlets. Besides, FIRE argues, the right to make editorial decisions when training AI models is clearly protected by the First Amendment: <\/p>\n

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Again, the First Amendment protects from government encroachment that freedom to choose where to share and receive information, and the Commission has no authority to recharacterize protected editorial decisions as \u201cdeceptive\u201d based on a declaration that AI users monolithically desire to, as the Statement suggests, \u2018feel that their values are being respected.\u2019 The Commission has no authority to define Americans\u2019 values.<\/p>\n<\/blockquote>\n

The FTC\u2019s proposed policy is also an attempt to preempt and undermine state regulation of AI, according to the Electronic Privacy Information Center (EPIC), a digital rights group focused on algorithmic discrimination. While the vast majority won\u2019t become law, in 2026 alone, lawmakers in states across the country have introduced roughly 1,500 bills to protect consumers in the age of AI, including legislation criminalizing digital impersonation with AI deepfakes and addressing the mental health risks associated with chatbots, especially for children. <\/p>\n

Big Tech has fought state regulations at every turn and has a stalwart ally in the Trump administration. According to the FTC\u2019s proposed policy statement, if AI engineers are not tempted to train AI models on their own ideological biases, state laws may require them to do so in the name of \u201cso-called equity.\u201d However, the federal government is falling behind on regulating AI, and states continue to be at the forefront of creating online privacy and safety, to EPIC and Free Press. <\/p>\n

For years, researchers have recognized that the nation\u2019s legacy of racism is reflected in data \u2014 including the data hoovered up by AI. In Colorado, a new law cited by the FTC statement requires companies to be transparent about the data their AIs use to make decisions about online financial services, health care, education, housing, and hiring, in order to provide consumers with some level of protection against algorithmic discrimination. Under the FTC\u2019s proposal, companies that meet the law\u2019s requirements could be targeted for deceptive advertising. <\/p>\n

\u201cThey are also trying to tell the states: Don\u2019t pass laws that attempt to address racist algorithmic bias, <\/em>even though everybody understands that it\u2019s been a documented problem in the rise of machine learning,\u201d Jindia said. \u201cThis is part of the same censorship campaign that has been in place since day one of the Trump administration, and just expanding it to AI.\u201d <\/p>\n

Read more Wildfire Experts Worry Trump Administration Directives Are Putting Firefighters at Risk<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As Elon Musk defends nude deepfakes, the FTC is moving to censor AI models trained to recognize historical injustices.<\/p>\n","protected":false},"author":1,"featured_media":1310,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nTrump\u2019s Federal Trade Commission Is Threatening to Punish Big Tech for \u201cWoke AI\u201d - Smart Moving Home<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/smartmovinghome.com\/?p=1311\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s Federal Trade Commission Is Threatening to Punish Big Tech for \u201cWoke AI\u201d - 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