The FTC issued 6(b) orders to seven technology companies to investigate the safety and privacy practices of their AI chatbots, particularly regarding impacts on children and teens. The inquiry focuses on compliance with children's privacy laws, data handling, and disclosures, requiring companies to provide information on these aspects.
The FTC ordered the companies to submit detailed information on their AI chatbot operations, including safety measures for children, data collection and sharing practices, monetization strategies, and compliance with COPPA.
In-house legal teams should review vendor agreements (for third-party AI providers), customer-facing terms of service, and data processing agreements. Focus on clauses governing data collection/use (especially for users under 13), consent mechanisms (requiring verifiable parental consent under COPPA), data retention limits for minor data, breach notification procedures, and disclosures about AI capabilities and risks. Changes may include implementing robust age-gating, integrating parental consent flows, restricting data harvesting from child accounts, adding clear warnings about AI companionship risks, and mandating regular safety assessments for chatbot interactions with minors.
Entity
Alphabet, Inc.; Character Technologies, Inc.; Instagram, LLC; Meta Platforms, Inc.; OpenAI OpCo, LLC; Snap, Inc.; X.AI Corp.
Also known as: Alphabet, Character Technologies, Instagram, Meta, OpenAI, Snap, X.AI
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-launches-inquiry-ai-chatbots-acting-companions
AICompanioChatbot 6(b)CoverLetter3
https://www.ftc.gov/system/files/ftc_gov/pdf/AICompanioChatbot%206%28b%29CoverLetter3.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"The recipients include: * Alphabet, Inc.; * Character Technologies, Inc.; * Instagram, LLC; * Meta Platforms, Inc.; * OpenAI OpCo, LLC; * Snap, Inc.; and * X.AI Corp."
"comply with the Children’s Online Privacy Protection Act Rule"
"The FTC is interested in particular on the impact of these chatbots on children and what actions companies are taking to mitigate potential negative impacts, limit or restrict children’s or teens’ use of these platforms, or comply with the Children’s Online Privacy Protection Act Rule."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.