SCOTUS extraterritoriality case could undercut broad state AI laws

neil_chilson · x · 2026-10-05

Neil Chilson, former FTC commissioner, notes that Suncorp Energy v. Boulder County, argued before SCOTUS this morning, has AI implications. The case is in part about whether states can regulate conduct occurring entirely outside their borders (the underlying issue is climate change).

He is watching how the Court treats the extraterritoriality argument, because many state AI bills have broad extraterritorial effects — often intentionally. He argues such effects are non-democratic and contrary to the Constitutional design; whether SCOTUS agrees remains to be seen.

Related event: SCOTUS Hears Suncor Case That Could Undermine State AI Laws(2 posts)→

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