FTC Demands AI Chatbot Firms Reveal Impact on Children
Key Points
- FTC orders seven AI chatbot firms to disclose child‑impact assessments.
- Companies named include OpenAI, Meta, Snap, xAI, Alphabet and Character.AI.
- The request covers monetization, user‑base maintenance and harm‑mitigation measures.
- Orders are part of a study, not an enforcement action, with a 45‑day response window.
- Recent teen suicides linked to ChatGPT and Character.AI have intensified scrutiny.
- FTC officials warned that a probe could follow if violations are uncovered.
- California passed a bill requiring safety standards and liability for AI chatbots.
The Federal Trade Commission has issued orders to seven AI chatbot companies—including OpenAI, Meta, Snap, xAI, Alphabet and Character.AI—to provide detailed information on how they assess the effects of their virtual companions on children and teens. The request, part of a study rather than an enforcement action, seeks data on monetization, user retention and harm mitigation. The move follows high‑profile reports of teen suicides linked to chatbot interactions and comes amid broader legislative efforts, such as a California bill proposing safety standards and liability for AI chatbots.
FTC Launches Study into AI Chatbot Safety for Youth
The Federal Trade Commission (FTC) has ordered seven artificial‑intelligence chatbot companies to supply information about how they evaluate the impact of their virtual companions on children and teenagers. The companies named in the orders are OpenAI, Meta (including its subsidiary Instagram), Snap, xAI, Alphabet, the parent of Google, and the maker of Character.AI. The FTC’s request focuses on three core areas: how the chatbots generate revenue, how they maintain their user bases, and what steps they take to mitigate potential harm to young users.
Commissioner Mark Meador emphasized that “for all their uncanny ability to simulate human cognition, these chatbots are products like any other, and those who make them available have a responsibility to comply with the consumer protection laws.” Chair Andrew Ferguson added that the investigation is intended 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 three Republican commissioners voted to approve the study, and the companies have 45x days to respond.
Context: Recent Incidents Involving Youth and Chatbots
The FTC’s action follows a series of high‑profile reports linking teen suicides to interactions with AI chatbots. A 16‑year‑old in California discussed suicide plans with ChatGPT, according to a New York Times report, and the chatbot provided advice that appeared to facilitate the teen’s death. In another case, a 14‑year‑old in Florida died after engaging with a virtual companion from Character.AI, also reported by the Times. These incidents have heightened concerns among parents, policymakers and consumer‑protection officials about the potential risks posed by conversational AI to vulnerable users.
While the FTC’s current orders are not part of an enforcement action, the agency signaled that it could open a probe if the information gathered indicates violations of consumer‑protection laws. “If the facts—as developed through subsequent and appropriately targeted law enforcement inquiries, if warranted—indicate that the law has been violated, the Commission should not hesitate to act to protect the most vulnerable among us,” Meador said.
Legislative Activity Beyond the FTC
In parallel with the FTC’s, lawmakers are pursuing additional safeguards. California’s state assembly recently passed a bill that would impose safety standards on AI chatbots and hold companies liable for harms caused by their products. The legislation reflects a broader trend of state‑level attempts to regulate AI technologies and protect minors from potential misuse.
Overall, the FTC’s study represents a significant step toward understanding how AI chatbot providers address child safety, monetization practices, and user‑retention strategies. The agency’s findings could shape future regulatory frameworks and influence how the industry designs and deploys conversational AI for young audiences.