The Federal Trade Commission has ordered seven technology companies — OpenAI, Meta, Alphabet, Snap, Instagram, X.AI and Character Technologies — to turn over detailed information about how their AI chatbots are tested, monitored and safeguarded when used by children. The agency wants to know how companies develop chatbot "characters," what age-verification and access restrictions exist, how monetization works, and whether personal data from conversations with minors is collected or shared.
FTC Chairman Andrew Ferguson characterized the inquiry as a study under the agency's authority to demand industry information rather than a formal enforcement action, though it comes amid mounting external pressure: more than 40 state attorneys general have raised concerns, several lawsuits have linked companion chatbots to instances of self-harm among young users, and child-safety advocates have warned that emotionally responsive AI characters can foster unhealthy attachment in vulnerable users.
Several of the companies under scrutiny have already rolled out safety features aimed at younger users, including stricter content filters and usage reminders, though critics argue those measures remain inconsistent and insufficiently tested. The FTC's findings could inform future rulemaking or enforcement action, and place additional pressure on companies to demonstrate that their safety claims hold up under regulatory scrutiny rather than marketing language alone.
