FTC Starts Investigating AI Firms Over Their Chatbot Companions for Teens

The Federal Trade Commission (FTC) has opened an investigation into several major tech companies, focusing on how their AI chatbots may affect children and teens who use them as companions. 

The agency confirmed that it has sent formal requests for information to Alphabet, the parent company of Google; Meta, which owns Instagram and Facebook; Snap; Character Technologies; xAI; and OpenAI, the creator of ChatGPT. 

According to the FTC, the purpose of the inquiry is to learn what measures these companies have put in place to ensure their chatbot systems are safe when interacting with young people. The commission also wants details on how the companies are restricting access for minors, what efforts are being made to protect teens from possible negative outcomes, and how parents and users are being informed of the potential dangers. 

The investigation comes at a time when AI chatbots are becoming a regular part of children’s lives. Many young users now rely on these systems for schoolwork, guidance on daily choices, or even emotional comfort. 

Despite their growing popularity, studies have shown that these tools can sometimes give harmful or reckless advice on serious issues such as substance use, eating disorders, and mental health struggles. 

Some families have already taken legal action over alleged harms. A mother in Florida has filed a lawsuit against Character.AI, claiming her teenage son developed a damaging and abusive attachment to a chatbot before taking his own life. Similarly, the parents of a 16-year-old boy in California have accused OpenAI and Sam Altman, its CEO, of negligence, alleging that ChatGPT gave their son instructions on how to plan his suicide. 

Character.AI stated that it was prepared to cooperate with the inquiry and emphasized its investments in safety tools, such as a redesigned under-18 user experience and parental monitoring features. The company also highlighted that every chat includes disclaimers reminding users that its AI characters are fictional. 

Snap stated that its “My AI” chatbot clearly communicates its limitations and expressed support for the FTC’s effort to shape responsible AI policies that encourage innovation while safeguarding users. 

Meta and OpenAI have recently announced new rules around how their systems engage with teens. OpenAI revealed it will soon allow parents to connect their accounts to their teen’s profile, giving them control over certain features and sending alerts if signs of distress are detected. Meta reported that its bots will now avoid conversations with teens about sensitive subjects such as self-harm or eating disorders, instead directing them toward professional resources. 

As chatbot creators are prevailed upon to clean up their act, other firms like Thumzup Media Corp. (NASDAQ: TZUP) will avoid the bad press of chatbots soiling the positive ends to which they are deploying AI technologies. 

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