The Federal Trade Commission (FTC) has launched an inquiry into the potential risks posed by AI-powered chatbots, particularly when used by children and teens. The FTC issued orders to seven companies, namely Alphabet, Character Technologies, Instagram, Meta Platforms, OpenAI, Snap, and X.AI, seeking detailed information on how they test, measure, and monitor the impacts of chatbots designed to simulate human-like conversations. The agency’s investigation focuses on whether firms have taken steps to evaluate safety, limit children’s access, and inform users and parents of potential risks.
FTC Chairman Andrew N. Ferguson stated, “Protecting kids online is a top priority for the Trump-Vance FTC, and so is fostering innovation in critical sectors of our economy. As AI technologies evolve, it is important to consider the effects chatbots can have on children.”
The inquiry, launched under the FTC’s 6(b) authority, will examine how companies monetize user engagement, process and store inputs, develop characters, and handle personal data collected during interactions. It will also examine disclosures, advertising practices, and compliance with the Children’s Online Privacy Protection Act.
The Commission voted unanimously to issue the orders, with Commissioners Melissa Holyoak and Mark R. Meador releasing separate statements. The findings are expected to help the Commission determine whether further safeguards or policy measures are needed to protect children and teens in the rapidly expanding AI chatbot market.
