FTC Launches Deep Investigation into AI Chatbot Giants over Risks to Young Users

The Federal Trade Commission has initiated a sweeping probe into seven major tech companies operating consumer-facing AI chatbots, including OpenAI, Alphabet, Meta, xAI, Snap, and Character Technologies. The inquiry focuses on potential harms to children and teens interacting with these platforms.

Generative AI now enables chatbots to simulate human-like communication, creating relationships that may blur lines for young users. Regulators express concern over excessive trust leading to privacy violations or psychological damage.

Companies must disclose development processes, child safety measures, and compliance with COPPA regulations. The investigation specifically examines monetization strategies, user input processing, and data collection practices from conversations.