FTC Launches Inquiry into AI Chatbots Acting as "Companions"

Companies Targeted: OpenAI OpCo, X.AI Corp.; ALphabet, Inc.; Character Technologies, Inc. Instagram, LLC; Meta Platforms, Inc.; LLC; and Snap, Inc.

As part of its inquiry, the FTC is seeking information about how the companies:

• monetize user engagement;
• process user inputs and generate outputs in response to user inquiries;
• develop and approve characters;
• measure, test, and monitor for negative impacts before and after deployment;
• mitigate negative impacts, particularly to children;
• employ disclosures, advertising, and other representations to inform users and parents about features, capabilities, the intended audience, potential negative impacts, and data collection and handling practices;
• monitor and enforce compliance with Company rules and terms of services (e.g., community guidelines and age restrictions); and
• use or share personal information obtained through users’ conversations with the chatbots.