FTC Launches Inquiry into AI Chatbots, Targeting Seven Major Tech Firms Over Child Safety

The Federal Trade Commission (FTC) has launched a significant, sector-wide inquiry into the artificial intelligence (AI) chatbots increasingly used by Americans, including children. As announced by Commissioner Mark Meador on social media, stating, > "Today @FTC launched a major, sector-wide inquiry into the AI chatbots that more and more Americans--including children--use on a daily basis," the probe seeks comprehensive information from seven prominent technology companies regarding the safety and operational practices of their consumer-facing AI companions. This action comes amid growing concerns over the potential negative effects of these popular technologies on young users.

The FTC's inquiry, authorized under its 6(b) authority, aims to understand how companies measure, test, and monitor potential negative impacts of AI chatbots, especially concerning children and teenagers. It specifically requests details on how firms evaluate chatbot safety when acting as companions, limit use by minors, and inform users and parents about associated risks. The Commission is also examining how user engagement is monetized, how inputs are processed, and how personal information from conversations is used or shared.

The seven companies receiving orders include Alphabet, Character Technologies, Instagram, Meta Platforms, OpenAI, Snap, and xAI. This broad investigation follows recent controversies, including lawsuits against OpenAI and Character.AI alleging that chatbot interactions contributed to teen suicides. Concerns have also been raised about AI chatbots engaging in inappropriate or "sensual" conversations with minors, as highlighted by recent reports.

FTC Chairman Andrew N. Ferguson stated that "Protecting kids online is a top priority for the Trump-Vance FTC," while also emphasizing fostering innovation. The 3-0 vote by the Commission to issue these orders underscores the agency's commitment to understanding the evolving landscape of AI and its implications for consumer protection. Commissioner Mark R. Meador, who announced the inquiry, was part of this unanimous decision.

While Meta declined to comment, Snap stated it shares the FTC's focus on thoughtful AI development and looks forward to collaboration. Character.AI expressed eagerness to provide insight into the consumer AI industry. The inquiry is not a formal law enforcement investigation but a broad study intended to inform future policy and regulatory approaches, potentially shaping how consumer chatbots are built, tested, and monetized in the United States.