FTC Probes AI Chatbots Over Risks to Kids and Teens

Federal Trade Commission Probes AI Chatbots Over Risks to Kids and Teens

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 11, 2025

Key Takeaways

The FTC is investigating seven tech firms to understand how AI chatbots may affect minors and what safety measures are in place;
The review focuses on emotional influence, data use, character design, and how these bots engage young users;
California lawmakers and the US Senate are also taking steps to assess and regulate youth-focused AI chatbot tools.

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The US Federal Trade Commission (FTC) has initiated a formal review into the potential impact of artificial intelligence (AI) chatbots on children and teenagers.

The agency is examining whether these bots, which imitate human emotion and behavior, could lead young users to form personal connections.

As part of the investigation, the FTC sent information requests to Alphabet, Meta, Instagram, Snap, OpenAI, Character.AI, and xAI.

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The questions focus on several areas, including how companies test their chatbot features with minors, what warnings they provide to parents, and how they earn money through user engagement.

The FTC is also asking about how AI responses are created, how characters are designed and approved, how user data is collected or shared, and what actions are taken to avoid harm to young people.

FTC Chair Andrew Ferguson noted that as AI tools continue to develop, it is important to understand how they may impact children while also supporting the country’s position in this industry.

He said this investigation will help reveal how AI companies build their tools and what they do to protect young users.

In California, two state bills targeting the safety of AI chatbots for minors are nearing finalization and could be signed into law soon. Meanwhile, a US Senate hearing next week will also examine the risks associated with these chatbot systems.

On August 18, Texas Attorney General Ken Paxton opened an investigation into Meta AI Studio and Character.AI. Why? Read the full story.