Trade Commission Investigating Impacts of AI Chatbots on Children

The Federal Trade Commission has opened an investigation into artificial intelligence products that act as companions, as well as what steps companies have taken to limit potential negative effects of the bots on children and teens.

“As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry,” FTC Chairman Andrew Ferguson said in a press release on Sept. 11.

“The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children.”

The agency sent seven companies—including Google’s parent company Alphabet and Meta Platforms—orders for special reports on things like how they develop AI characters and mitigate negative impacts on children.

In letters to the companies, the agency invoked Section 6(b) of the FTC Act, which allows it to require annual or special reports from particular entities.

The letters came amid a spate of news stories about alleged negative interactions with AI, including a mother who sued Character.AI over a bot allegedly encouraging her teen son to take his own life.

Character.AI asked a judge earlier this year to dismiss the case, saying that it conflicted with the First Amendment and state law.

“[Character.AI] cares deeply about the well-being of its users and extends its sincerest sympathies to Plaintiff for the tragic death of her son,” the company said in a court filing.

“But the relief Plaintiff seeks would impose liability for expressive content and violate the rights of millions of [Character.AI] users to engage in and receive protected speech.”

In May, the judge allowed the case to proceed.

These types of cases could grow as regulators and policy advocates wrestle with how to address the emerging technology.

In July, President Donald Trump issued an action plan focusing on expanding AI through things like removing red tape and onerous regulations.

It’s unclear how the FTC, which approved the orders in a 3–0 vote, will proceed after gathering information.

The information requested by the FTC indicated it was interested in tracking how companies are self-regulating or taking actions on their own to protect children.

Among other things, the FTC is asking for information on how companies “measure, test, and monitor for negative impacts before and after deployment.”

Other information includes how the companies “employ disclosures, advertising, or other representations to inform users and parents about features, capabilities, the intended audience, potential negative impacts, and data collection and handling practices.”

Several companies listed by the FTC did not respond to The Epoch Times before publishing time.

Some companies have announced programs to combat child exploitation and the harmful interactions with children.

A Character.AI spokesperson told The Epoch Times that the company looked forward to collaborating with the FTC.

“In the past year, we’ve rolled out many substantive safety features, including an entirely new under-18 experience and a Parental Insights feature,” the spokesperson said.

“We have prominent disclaimers in every chat to remind users that a character is not a real person and that everything a character says should be treated as fiction.”