If you believe tech giants wield power now, just wait for this new legislation brewing in Colorado. As reported by The Lever, a bill introduced in the state’s legislature last year aims to make it illegal for individuals to sue AI companies for violating the Colorado Consumer Protection Act. This action would eliminate a significant recourse for consumers harmed by unfair practices by companies like OpenAI or Anthropic. If the bill passes, only the state Attorney General would have the authority to sue AI companies under the Act.
“By saying the Attorney General is the only avenue of enforcement of the Colorado Consumer Protection Act, they’re saying that for [the AI] industry, there are fewer avenues for people to seek justice,” explained Colorado representative Javier Mabrey (D) to The Lever.
The bill’s four sponsors, all Democrats, have received endorsements from the Colorado Chamber of Commerce, which represents the state’s business interests. The bill deceptively appears to enforce compliance with consumer protection laws, which experts told The Lever is redundant because companies are already required to comply.
“This is a pretty standard playbook for corporate interests to try to say, ‘Look, we’re not going to allow private right of action for regular people to bring lawsuits forward to attack wrongdoing,'” stated David Seligman from the legal nonprofit Towards Justice, who is running for Attorney General. “They know it’s much harder to police wrongdoing when regular people can’t come forward and bring lawsuits.”
Rep. William Lindstedt, a bill sponsor and member of the Colorado Opportunity Caucus, sees it differently, asserting that the bill “clarifies AI decision-making is not a defense against deceptive trade practices or discrimination.”
“It’s entirely appropriate for the [Attorney General] to be responsible for protecting Coloradans, and it is the case under many statutes,” Lindstedt told The Lever.
However, some progressive colleagues disagree, claiming Governor Jared Polis wants to give an illusion of regulating Big Tech. Rep. Brianna Titone (D) argues the bill “provides more immunity to the tech companies.”
The Colorado bill comes after a close call at the national level, where the AI industry nearly passed a major law removing government oversight. In May, Republicans introduced a bill banning state AI regulation for a decade, although it ultimately failed after passing the House. The bill that eventually passed, known as the “One Big Beautiful Bill,” part of President Trump’s policy agenda, left AI regulation to the states. Hence, if states like Colorado choose to accommodate tech companies, they can. Colorado seems eager to lead the way.
