PRIVACY & DATA SECURITY
Trump Signs EO to Establish National AI Regulatory Framework, Target State Laws
President Trump signed a sweeping executive order on December 11th aimed at curbing state AI regulations viewed by the administration as burdensome and inconsistent with national innovation goals. The order seeks to halt enforcement of existing state AI laws, discourage the passage of new ones, and accelerate the creation of a federal AI governance framework. A new DOJ AI Litigation Task Force will be created to challenge state laws the DOJ believes to be unconstitutional or conflicting with federal policy. It also instructs the Department of Commerce to evaluate all existing state AI regulations and authorizes the withholding of certain broadband funds from noncompliant states.
BUSINESSES NEED TO KNOW: So, is this executive order really going to upend state AI laws or is it more bark than bite?
While the move signals aggressive federal intent, its actual power to invalidate state AI laws is limited for now. The order itself does not preempt state statutes; instead, it instructs federal agencies to try to challenge them through litigation and funding pressure. Expect major legal challenges, prolonged uncertainty, and only gradual shifts rather than immediate preemption. However, businesses will face a murky compliance landscape as states choose to pause, modify, or double down on their AI bills while litigation unfolds. We’ll call this one “bark with potential (long term) bite.”
FCC to Hold January Workshop on Age Verification Technologies
The Federal Trade Commission will hold a free public workshop on January 28, 2026, to discuss a range of issues related to age verification and estimation technologies. Bringing together researchers, academics, industry representatives, consumer advocates, government regulators, and others, topics will include: why age verification matters, age verification and estimation tools, navigating the regulatory contours of age verification, how to deploy age verification more widely, and the interplay between age verification technologies and the Children’s Online Privacy Protection Act (COPPA) Rule. The workshop will be held online and in person, with more info shared on the FTC’s event page.
BUSINESSES NEED TO KNOW: As regulators and consumer advocates push for stronger online protections for minors, companies face growing compliance obligations under laws like the Children’s Online Privacy Protection Act (COPPA). Understanding how to effectively implement compliant age verification solutions to comply with evolving state and federal legal standards will become increasingly important in 2026 and beyond.
Check out our upcoming webinar! Privacy Watch 2026: Key Risks, New Laws & What to Watch. Register here.
ADVERTISING & MARKETING
New York Sets National Benchmark with AI Disclosure Law for Advertisers
New York Governor Kathy Hochul signed groundbreaking legislation requiring advertisers to disclose when AI-generated “synthetic performers” appear in commercial content targeting New York consumers. Taking effect June 9, 2026, S.8420-A/A.8887-B applies to the producers and creators of advertisements and mandates clear disclosures within the advertisement itself. Notably, the law does not apply to the broadcast or publishing platforms on which the advertisement appears, provided that these platforms, such as television networks, streaming services, newspapers/magazines, and billboard operators, did not create the advertisement themselves.
Several exemptions exist, including audio-only advertisements, such as those that appear on radio or podcasts, as well as those in which AI is used solely for language translation of a real person. Noncompliance can result in civil penalties of up to $5,000 for per violation.
BUSINESSES NEED TO KNOW: It appears New York will be joining California on the frontline of regulating the development and use of AI technologies, and this bill is just one step in that approach. Also signed by Governor Hochul in December was S.8391/A.8882, requiring consent from heirs or executors if a person wishes to use the likeness of an individual for commercial purposes after their death, as well as the Responsible AI Safety and Education Act (RAISE Act), which imposes governance and safety measures on developers of frontier AI models, similar to California’s Transparency in Frontier Artificial Intelligence Act.
Advertisers should begin preparing for compliance now. Start by: 1) auditing advertisements for incorporation of AI-generated or AI-modified assets that meet the statutory definition of a “synthetic performer,” and 2) updating vendor contracts with creative agencies, production studios, freelancers, and AI tool providers to include representations, warranties, and disclosure obligations related to AI usage.
FTC Warns 10 Companies Over Potential Violations of Consumer Review Rule
The Federal Trade Commission (FTC) issued warning letters to 10 companies regarding possible violations of its Consumer Review Rule, which prohibits deceptive practices involving product reviews and testimonials. The Rule, in part, bans misrepresentations about a reviewer’s experience, incentivizing reviews for positive or negative sentiment, and failing to disclose insider or family-written reviews. It also addresses suppression of certain reviews and misuse of social media influence indicators. While the letters are not formal findings of wrongdoing or liability, they serve as a red flag for increased scrutiny and reminder that violations can lead to lawsuits and civil penalties of up to $53,088 per violation.
BUSINESSES NEED TO KNOW: The FTC is actively enforcing its Consumer Review Rule, which prohibits misleading or incentivized reviews, undisclosed insider testimonials, and suppression of negative feedback. Make sure your review protocols are in compliance by:
- Training Marketing Teams: Educate staff on FTC requirements and implement internal review policies to maintain compliance.
- Auditing Review Practices: Verify that all consumer reviews and testimonials accurately reflect real experiences and product use.
- Eliminating Incentivized Bias: Ensure compensation or perks are not tied to positive or negative review sentiment.
- Disclosing Insider Relationships: Clearly identify reviews written by employees, affiliates, or family members.
- Avoiding Review Suppression: Do not hide or remove negative reviews unless they violate clear, published content guidelines.
- Monitoring Social Proof Indicators: Confirm that follower counts, likes, and views used in marketing are authentic and not misleading.
FTC and 21 States Sue Uber Over Deceptive Subscription Practices
The Federal Trade Commission, joined by 21 states and the District of Columbia, filed an amended lawsuit against Uber in California federal court, alleging the company enrolled consumers in its Uber One subscription service without consent and made cancellation excessively difficult. The complaint claims Uber violated consumer protection laws including the FTC Act, the Restore Online Shoppers’ Confidence Act, and multiple other state laws by using misleading tactics to deter or prevent cancellation. Regulators allege these practices, which include requiring users to navigate up to 32 steps and 23 screens to cancel, trap consumers in recurring charges and contradict Uber’s claims that subscriptions can be canceled “anytime.”
BUSINESSES NEED TO KNOW: This case underscores not only regulators’ growing focus on “negative option” practices and subscription cancellation processes, but the continued enforcement partnership between federal and state regulators in this space. Businesses offering subscription services should review their enrollment and cancellation flows to ensure they are clear, simple, and compliant with the FTC Act, the Restore Online Shoppers’ Confidence Act, and the array of applicable state consumer protection laws.
TCPA & TELESERVICES
FTC Releases 2025 Do Not Call Registry Data Book
The FTC released its National Do Not Call Registry Data Book for 2025, showing that while total complaints increased vs. the prior year, unwanted call complaints are still down approximately 48% from 2021, when the agency logged around five million reports. Consumers continue to report robocalls and live telemarketing calls across familiar categories such as debt‑reduction, imposters, and medical/prescription-related issues.
The DNC Registry expanded by another 4.7 million phone numbers, reaching roughly 258.5 million active registrations—marking steady growth and nearly 6% growth since 2021. Robocalls remain the primary source of DNC violation complaints. The report also provides a detailed state-by-state analysis of DNC registrations and complaint levels, with Arizona, Tennessee, Nevada, Illinois, and Florida reporting the highest complaint rates per 100,000 residents.
BUSINESSES NEED TO KNOW: Access the complete data book here. While unwanted call complaints are down, DNC compliance remains a high priority. Even if you are regularly scrubbing against the National DNC or believe that you are exempt from its requirements, don’t forget about your business’ internal do not call list as well. Be sure to review your do not call request processes and ensure they promptly honor company-specific opt outs.
Did you catch our latest blog? Consent-Based Text Campaigns in Texas: Are You Really Exempt? Read here.
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