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

SCRYPTO MAGAZINE by SCRYPTO MAGAZINE
September 13, 2025
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FTC scrutinizes OpenAI, Meta, and others on AI companion safety for kids
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ZDNET’s key takeaways

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

The Federal Commerce Fee (FTC) is investigating the security 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 data 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 might 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 grasp what steps, if any, corporations have taken to guage the security of their chatbots when performing as companions, to restrict the merchandise’ use by and potential unfavourable results on kids and teenagers, and to apprise customers and oldsters of the dangers related to the merchandise,” the company wrote within the launch.

These orders had been issued beneath part 6(b) of the FTC Act, which grants the company the authority to scrutinize companies with out a particular regulation enforcement objective.

The rise and fall(out) of AI companions

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

Elon Musk’s xAI just 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 using AI companions. 

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

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

An inner coverage memo from Meta reported on by Reuters final month, for instance, exhibits the corporate permitted Meta AI, its AI-powered digital assistant, and the opposite chatbots working throughout its household of apps “to interact a baby in conversations which might 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 latest stories of customers creating romantic bonds with their AI companions. OpenAI and Character.ai are both currently being sued by dad and mom 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 stated it could 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 very unmitigated catastrophe, although. Some autistic folks, for instance, have used them from corporations like Replika and Paradot as virtual conversation partners as a way to follow social abilities that may then be utilized in the actual world with different people. 

Shield children – but in addition, preserve constructing

Underneath the management of its earlier chairman, Lina Khan, the FTC launched a number of inquiries into tech corporations to research 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 expertise’s deployment, and his AI Action Plan has largely been interpreted as a inexperienced gentle for the trade to push forward with the development of high-priced, energy-intensive infrastructure to coach new AI fashions, as a way 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 strategy to AI. 

“Defending children on-line is a high precedence for the Trump-Vance FTC, and so is fostering innovation in vital sectors of our financial system,” company Chairman Andrew N. Ferguson wrote in a press release. “As AI applied sciences evolve, you will need to take into account the results chatbots can have on kids, whereas additionally guaranteeing that america 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 features of the AI trade. Final month, Texas lawyer basic Ken Paxton launched an investigation into Meta and Character.ai “for doubtlessly participating in misleading commerce practices and misleadingly advertising and marketing 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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