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."
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.