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FTC scrutinizes OpenAI, Meta, and others on AI companion safety for kids

n70products by n70products
September 12, 2025
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FTC scrutinizes OpenAI, Meta, and others on AI companion safety for kids
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Observe ZDNET: Add us as a preferred source on Google.


ZDNET’s key takeaways

  • The FTC is investigating seven tech corporations constructing AI companions.
  • The probe is exploring security dangers posed to children and youths.
  • Many tech corporations supply AI companions to spice up consumer engagement.

The Federal Commerce Fee (FTC) is investigating the protection dangers posed by AI companions to children and youngsters, the company announced Thursday.

The federal regulator submitted orders to seven tech corporations constructing consumer-facing AI companionship instruments — Alphabet, Instagram, Meta, OpenAI, Snap, xAI, and Character Applied sciences (the corporate behind chatbot creation platform Character.ai) — to supply info outlining how their instruments are developed and monetized and the way these instruments generate responses to human customers, in addition to any safety-testing measures which can be in place to guard underage customers.

Additionally: Even OpenAI CEO Sam Altman thinks you shouldn’t trust AI for therapy

“The FTC inquiry seeks to know what steps, if any, corporations have taken to judge the protection of their chatbots when appearing as companions, to restrict the merchandise’ use by and potential detrimental results on kids and youths, and to apprise customers and oldsters of the dangers related to the merchandise,” the company wrote within the launch.

These orders have been issued beneath part 6(b) of the FTC Act, which grants the company the authority to scrutinize companies with no particular regulation enforcement goal.

The rise and fall(out) of AI companions

Many tech corporations have begun providing AI companionship instruments in an effort to monetize generative AI methods and increase consumer engagement with present platforms. Meta founder and CEO Mark Zuckerberg has even claimed that these digital companions, which leverage chatbots to reply to consumer queries, may assist mitigate the loneliness epidemic.

Elon Musk’s xAI lately added two flirtatious AI companions to the corporate’s $30/month “Tremendous Grok” subscription tier (the Grok app is at the moment available to customers ages 12 and over on the App Retailer). Final summer season, Meta started rolling out a feature that enables customers to create customized AI characters in Instagram, WhatsApp, and Messenger. Different platforms like Replika, Paradot, and Character.ai are expressly constructed round the usage of AI companions. 

Additionally: Anthropic says Claude helps emotionally support users – we’re not convinced

Whereas they differ of their communication types and protocol, AI companions are usually engineered to imitate human speech and expression. Working inside what’s basically a regulatory vacuum with only a few authorized guardrails to constrain them, some AI corporations have taken an ethically doubtful method to constructing and deploying digital companions. 

An inside coverage memo from Meta reported on by Reuters final month, for instance, reveals the corporate permitted Meta AI, its AI-powered digital assistant, and the opposite chatbots working throughout its household of apps “to have interaction a baby in conversations which can be romantic or sensual,” and to generate inflammatory responses on a variety of different delicate matters like race, well being, and celebrities.

In the meantime, there’s been a blizzard of current stories of customers creating romantic bonds with their AI companions. OpenAI and Character.ai are both currently being sued by mother and father who allege that their kids dedicated suicide after being inspired to take action by ChatGPT and a bot hosted on Character.ai, respectively. In consequence, OpenAI updated ChatGPT’s guardrails and mentioned it might broaden parental protections and security precautions. 

Additionally: Patients trust AI’s medical advice over doctors – even when it’s wrong, study finds

AI companions have not been a totally unmitigated catastrophe, although. Some autistic folks, for instance, have used them from corporations like Replika and Paradot as virtual conversation partners so as to apply social expertise that may then be utilized in the actual world with different people. 

Shield children – but additionally, preserve constructing

Underneath the management of its earlier chairman, Lina Khan, the FTC launched a number of inquiries into tech corporations to analyze doubtlessly anticompetitive and different legally questionable practices, equivalent to “surveillance pricing.”

Federal scrutiny over the tech sector has been more relaxed during the second Trump administration. The President rescinded his predecessor’s executive order on AI, which sought to implement some restrictions across the know-how’s deployment, and his AI Action Plan has largely been interpreted as a inexperienced mild for the trade to push forward with the development of pricey, energy-intensive infrastructure to coach new AI fashions, so as to preserve a aggressive edge over China’s personal AI efforts.

Additionally: Worried about AI’s soaring energy needs? Avoiding chatbots won’t help – but 3 things could

The language of the FTC’s new investigation into AI companions clearly displays the present administration’s permissive, build-first method to AI. 

“Defending children on-line is a prime precedence for the Trump-Vance FTC, and so is fostering innovation in crucial sectors of our financial system,” company Chairman Andrew N. Ferguson wrote in an announcement. “As AI applied sciences evolve, it is very important take into account the consequences chatbots can have on kids, whereas additionally guaranteeing that the US maintains its function as a worldwide chief on this new and thrilling trade.”

Additionally: I used this ChatGPT trick to look for coupon codes – and saved 25% on my dinner tonight

Within the absence of federal regulation, some state officers have taken the initiative to rein in some elements of the AI trade. Final month, Texas lawyer basic Ken Paxton launched an investigation into Meta and Character.ai “for doubtlessly partaking in misleading commerce practices and misleadingly advertising themselves as psychological well being instruments.” Earlier that very same month, Illinois enacted a law prohibiting AI chatbots from offering therapeutic or psychological well being recommendation, imposing fines as much as $10,000 for AI corporations that fail to conform.





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