One definition of free enterprise that the US government conveniently chooses to ignore:
Business governed by the laws of supply and demand, not restrained by government interference, regulation or subsidy, also called free market.
This is a definition of a free market that even Adam Smith would not have recognized. It was not regulation per se that he was opposed to, but mercantilism and state granted monopolies. He looked favorably regulations which protected workmen (citation Wealth of Nations I.10.121). He was also in favor of regulating banks where their actions endanger society, even at the expense of curtailing natural liberties (citation: Wealth fo Nations II.2.94
The free market is free of price or supplier choice regulations. It's not necessarily free of regulation per se, such as regulations of weights and measures, of worker or consumer safety, or even of public morality (e.g. drugs and prostitution).
In any case you can't use the actions of states to indict the federal government for hypocrisy, although there is plenty of other material for that.