FTC opens inquiry into AI “companion” chatbots
The Federal Trade Commission has launched a formal inquiry into companies that build AI “companion” chatbots. The probe asks seven firms — Alphabet (Google), Character Technologies (Character.AI), Meta (including Instagram), OpenAI, Snap and xAI — to explain how they measure, test and monitor potential harms to children and teens, how they handle user data, and how they monetize user engagement. The FTC also asked whether these services comply with the Children’s Online Privacy Protection Act (COPPA).
What the FTC requested
- Details on development, testing and approval of AI characters
- Information on data collection, retention and sharing practices
- How companies monetize engagement with AI companions
- Measures taken to protect underage users and parental disclosures
- Documentation of safety testing, incident reports and moderation systems
Context and concerns
The inquiry follows reports that some chatbots have amplified suicidal ideation and engaged in sexually themed conversations with underage users. FTC Commissioner Mark Meador warned the Commission should act if subsequent inquiries show violations of law, especially to protect vulnerable users.
Related reporting and sources
- FTC press release: Inquiry into AI chatbots acting as companions
- TechCrunch: FTC launches inquiry into AI chatbot companions
- Axios: Coverage of the FTC probe and industry context
- FTC info on 6(b) orders and reporting
Why this matters
AI companion chatbots are designed to form sustained, human-like interactions. Regulators are concerned those interactions could have immediate harms (privacy, mental health) even as long-term productivity benefits remain debated. The inquiry is information-gathering and does not itself mean enforcement — but it could lead to targeted law enforcement if violations are found.
Questions to readers: Do you trust AI companions used by young people? What protections would you like to see?
Note: This post summarizes official FTC materials and reporting from reputable technology news outlets.