It probably boils down to the definition of the word artificial, and both options can be correct. Just that in this climate I'll take anything the FDA does as a move with ulterior, probably nefarious, reasons.

No artificial colors can mean "no artificially created (synthetic) color" or "no artificially added (not naturally in the product) color".

We have a precedent with "no added sugar" for things that already contain a lot of it, like fruit juices. So the distinction is between "no added coloring" and "no synthetic coloring".