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 filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
The FTC issued its annual report to Congress describing fraud trends affecting older adults and the agency’s enforcement, education, and outreach efforts. The report is not a specific privacy enforcement action and announces no penalty or remedy.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.