Google, Meta, OpenAI face FTC inquiry on chatbot impact on kids

The antitrust and consumer protection agency said Thursday that it sent the orders to gather information to study how firms measure, test and monitor their chatbots and what steps they have taken to limit their use by kids and teens. The seven companies include Google; OpenAI; Meta and its Instagram unit; Snap Inc.; Elon Musk’s xAI; and Character Technologies Inc., the developer of Character.AI.

Chatbot developers face intensifying scrutiny over whether they’re doing enough to ensure safety of their services and prevent users from engaging in dangerous behavior. Last month, the parents of a California high school student sued OpenAI, alleging that its ChatGPT isolated their son from family and helped him plan his suicide in April. The company said it has extended its sympathies to the family and is reviewing the complaint.

Under US law, technology companies are barred from collecting data about children under the age of 13 without parental permission. For years, members of Congress have sought to extend those protections to older teens, though so far no legislation has managed to advance.

The FTC is conducting the inquiry under its so-called 6(b) authority that allows it to issue subpoenas to conduct market studies. The agency generally issues a report on its findings after analyzing the information from companies, though that process can take years to complete.

Although the information is collected for research purposes, the FTC can use any details it gleans to open official investigations or aid in existing probes. Since 2023, the agency has been probing whether OpenAI has violated consumer protection laws with its popular ChatGPT conversational AI bot.