The U.S. Federal Trade Commission has opened a broad inquiry into consumer AI chatbots, zeroing in on how conversations are monetized and how data is handled.
The agency has issued compulsory 6(b) orders to seven firms and asked for detailed disclosures.
Recipients include Alphabet, Meta, OpenAI, Character.AI, Instagram, Snap, and xAI. The study is not an enforcement action but can inform future cases.
The regulator wants to see how companies measure and monitor negative impacts, process user inputs, generate outputs, and use information gleaned from chats, with a special focus on child safety.
Says FTC Chairman Andrew N. Ferguson,
“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, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry. The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children.”
In a comment shared with Reuters, a Character.AI spokesperson says the company looks forward to “providing insight on the consumer AI industry and the space’s rapidly evolving technology,” noting the firm has rolled out many safety features in the last year.
Meanwhile, a Snap spokesperson says the firm is ready to cooperate with the FTC.
“We share the FTC’s focus on ensuring the thoughtful development of generative AI, and look forward to working with the Commission on AI policy that bolsters U.S. innovation while protecting our community.”
Meta declined to comment, while some other companies did not respond immediately to requests for comment.
Meta has recently been in hot water over its AI chatbots.
In late August, reports emerged that the company’s platforms hosted flirty chatbots impersonating Taylor Swift, Scarlett Johansson, Anne Hathaway and Selena Gomez without the celebrities’ permission.
Also, last month, two US senators pressed for a Congressional investigation into Meta Platforms after a report revealed internal guidelines that permit company chatbots to engage in romantic or sensual conversations with children.
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