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."
$750K
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$2.3M
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$35.0M
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$1.5M
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