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FTC Orders Seven AI Chatbot Makers to Disclose Impacts on Children

The move opens a market study that could inform investigations if the agency finds violations.

Overview

  • The FTC sent compulsory orders to Alphabet’s Google, OpenAI, Meta and its Instagram unit, Snap, xAI, and Character Technologies to provide detailed information on their chatbots’ effects on young users.
  • Companies must file special reports within 45 days outlining their practices and evidence regarding youth safety and potential harms, according to the agency’s notice.
  • Regulators seek data on testing and monitoring methods, age limits and other safeguards, monetization of engagement, advertising and disclosures, third‑party data sharing, and how firms track negative outcomes.
  • The inquiry uses the FTC’s Section 6(b) authority, enabling subpoenas for market studies, and the findings may lead to or bolster law‑enforcement actions.
  • The orders follow ongoing scrutiny that includes an FTC probe of OpenAI begun in 2023 and a recent lawsuit by parents alleging ChatGPT contributed to their son’s suicide.