FTC Probes AI Chatbot Companies Over Child Safety Concerns

The Federal Trade Commission issued orders Thursday to seven major technology companies, seeking information about how their AI-powered chatbots might impact children and teenagers who use the platforms as digital companions.

The inquiry targets companies including Alphabet (Nasdaq: GOOG), Meta Platforms (Nasdaq: META), OpenAI, Snap Inc. (NYSE: SNAP), Character Technologies, and X.AI Corp., focusing on chatbots designed to simulate human-like relationships and communication.

“Protecting kids online is a top priority for the Trump-Vance FTC, and so is fostering innovation in critical sectors of our economy,” said FTC Chairman Andrew N. Ferguson in a statement. “As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry.”

The commission is using its broad investigative authority to examine whether companies are adequately measuring and monitoring potential negative effects of AI chatbots that act as companions, particularly for young users who may develop trust and emotional relationships with the technology.

Regulators worry that these AI systems can convincingly simulate human traits and emotions, positioning themselves as trusted confidants that may lead young people to form emotional attachments to the technology.

The inquiry will examine how companies monetize user engagement, process conversations, develop chatbot characters, and implement safety measures. Regulators also want to know how firms comply with the Children’s Online Privacy Protection Act and what disclosures they provide to users and parents about potential risks.

Companies must provide information about their data collection practices, age verification systems, and efforts to mitigate harmful impacts on minors. The FTC also seeks details on how firms monitor compliance with their own terms of service and community guidelines.

The commission voted 3-0 to approve the investigative orders, with Commissioners Melissa Holyoak and Mark R. Meador issuing separate statements on the matter.

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