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

Olemedia/iStock/Getty Images Plus via Getty Images Follow ZDNET: Add us as a preferred source on Google. ZDNET's key takeaways The FTC is investigating seven tech companies building AI companions. The probe is exploring safety risks posed to kids and teens. Many tech companies offer AI companions to boost user engagement. The Federal Trade Commission (FTC) is investigating the safety risks posed by AI companions to kids and teenagers, the agency announced Thursday. The federal regulator s

FTC to AI Companies: Tell Us How You Protect Teens and Kids Who Use AI Companions

The Federal Trade Commission is launching an investigation into AI chatbots from seven companies, including Alphabet, Meta and OpenAI, over their use as companions. The inquiry involves finding how the companies test, monitor and measure the potential harm to children and teens. A Common Sense Media survey of 1,060 teens in April and May found that over 70% used AI companions and that more than 50% used them consistently -- a few times or more per month. Experts have been warning for some time

The FTC is investigating companies that make AI companion chatbots

The Federal Trade Commission is making a formal inquiry into companies that provide AI chatbots that can act as companions. The investigation isn't tied to any kind of regulatory action as of yet, but does aim to reveal how companies "measure, test, and monitor potentially negative impacts of this technology on children and teens." Seven companies are being asked to participate in the FTC's investigation: Google's parent company Alphabet, Character Technologies (the creator of Character.AI), Me

FTC orders AI companies to hand over info about chatbots’ impact on kids

is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform. The Federal Trade Commission (FTC) is ordering seven AI chatbot companies to provide information about how they assess the effects of their virtual companions on kids and teens. OpenAI, Meta, its subsidiary Instagram, Snap, xAI, Google parent company Alphabet, and the maker of Cha

Alphabet, Meta, OpenAI, xAI and Snap face FTC probe over AI chatbot safety for kids

In this photo illustration a virtual friend is seen on the screen of an iPhone on April 30, 2020, in Arlington, Virginia. The Federal Trade Commission on Thursday announced it is issuing orders to seven companies including OpenAI, Alphabet , Meta , xAI and Snap to understand how their artificial intelligence chatbots potentially negatively affect children and teenagers. The federal agency said AI chatbots may be used to simulate human-like communication and intrapersonal relationships with use

Disney Settles FTC Complaint With YouTube Over Children's Data Collection

Disney will pay a $10 million penalty for mislabeling videos on YouTube and allowing personal data to be collected from children without notifying parents or getting their consent, the FTC said in an announcement. The complaint filed in a US District Court, the FCC said, alleged that Disney uploaded videos to YouTube in channels that defaulted to "Not Made For Kids" when the videos should have been labeled "Made For Kids." Due to the mislabeling, videos intended for children collected more inf

Appeals court reinstates fired Democratic FTC commissioner

Rebecca Kelly Slaughter can resume her work as a commissioner for the FTC, a federal appeals court has ruled. Slaughter, who was one of the two Democratic commissioners for the FTC that President Trump fired back in March, filed a lawsuit for her reinstatement. "Your continued service on the FTC is inconsistent with my administration’s priorities," a letter to the commissioners said. In July, US District Judge Loren AliKhan ruled that her removal from the agency was "unlawful and without legal e

Disney will pay $10 million to settle FTC claim it used cartoons to collect YouTube data on kids

is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform. Disney has agreed to pay $10 million to settle allegations from the Federal Trade Commission that it violated federal law by misleadingly labeling cartoons on YouTube so it could illegally collect children’s personal data. The FTC alleges that Disney failed to label some videos of

Apple’s stance on strong encryption gets the support of the FTC in US privacy U-turn

Apple’s commitment to end-to-end encryption is so strong that it withdrew a key privacy feature from the UK market rather than be forced to compromise it globally. The company also faced pressure on this front from the EU’s Digital Services Act (DSA). In a surprising twist, the White House came out in support of strong encryption, and the Federal Trade Commission (FTC) is now urging Apple and other tech giants to stand firm on the issue … The US’s changing narrative on strong encryption I des

FTC Sues Gym Chains for Making It Hard to Cancel Memberships

The Federal Trade Commission filed a lawsuit against the operators of several gym chains, including LA Fitness, on Wednesday over allegations that they make it too difficult to cancel memberships. And that’s probably welcome news for anyone who’s had the displeasure of trying to cancel with their gym. The companies being sued by the FTC are Fitness International and Fitness & Sports Clubs, which own gym chains like Esporta Fitness, City Sports Club, and Club Studio. The largest chain, LA Fitnes

Topics: cancel fitness ftc gym la

Ticket reseller sued for illegally buying over 2,000 Taylor Swift tickets

is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO. Posts from this author will be added to your daily email digest and your homepage feed. The Federal Trade Commission is suing a ticket broker for allegedly using “illegal means” to buy up hundreds of thousands of live event tickets, including for Taylor Swift’s Eras tour. Key Investment Group, which also does business as Epic Seats, TotalTickets.co

Elon Musk’s “thermonuclear” Media Matters lawsuit may be fizzling out

Media Matters for America (MMFA)—a nonprofit that Elon Musk accused of sparking a supposedly illegal ad boycott on X—won its bid to block a sweeping Federal Trade Commission (FTC) probe that appeared to have rushed to silence Musk's foe without ever adequately explaining why the government needed to get involved. In her opinion granting MMFA's preliminary injunction, US District Judge Sparkle L. Sooknanan—a Joe Biden appointee—agreed that the FTC's probe was likely to be ruled as a retaliatory

Court blocks FTC investigation into Media Matters' alleged scheme against X

The court has blocked the Federal Trade Commission's investigation into Media Matters, the media nonprofit that previously published research showing that ads appeared on X alongside neo-Nazi and other antisemitic content. In 2023, Elon Musk's X filed a lawsuit against the media watchdog following an advertiser exodus. It accused Media Matters of "knowingly and maliciously manufactur[ing] side-by-side images depicting advertisers' posts on X Corp.'s social media platform beside Neo-Nazi and whit

Judge says FTC investigation into Media Matters ‘should alarm all Americans’

A federal judge has granted a preliminary injunction blocking the Federal Trade Commission’s investigation into left-leaning advocacy group Media Matters. Back in 2023, Media Matters published research showing ads from major companies had appeared alongside antisemitic and other offensive content on Elon Musk-owned X. When major advertisers subsequently pulled back from the platform, X sued Media Matters. It also sued advertisers and advertiser groups over what it claimed was a “systematic ille

Match to pay $14M to the FTC due to false advertising and other deceptive practices

Back in 2019, the U.S. Federal Trade Commission (FTC) sued the dating app giant Match Group, accusing it of deceiving Match.com users into purchasing subscriptions through misleading means. Now, after six years, the company— which operates popular dating apps Match, Tinder, OkCupid, Hinge, and Plenty of Fish—has agreed to a $14 million settlement, as announced by the FTC on Tuesday. The FTC stated that the $14 million will be used to provide “redress to injured consumers.” According to the la

FTC: Older adults lost record $700 million to scammers in 2024

Americans aged 60 and older lost a staggering $700 million to online scams in 2024, marking a sharp rise in fraud targeting seniors, according to the Federal Trade Commission. This figure, presented in the agency's latest Consumer Protection Data Spotlight, represents an increase over all three categories of loss compared to previous years. Most notably, the amount of losses for those who lost over $100k recorded an eightfold jump compared to 2020. Below is an analysis of the amounts: Losses

FTC: older adults lost record $700 million to scammers in 2024

Americans aged 60 and older lost a staggering $700 million to online scams in 2024, marking a sharp rise in fraud targeting seniors, according to the Federal Trade Commission. This figure, presented in the agency's latest Consumer Protection Data Spotlight, represents an increase over all three categories of loss compared to previous years. Most notably, the amount of losses for those who lost over $100k recorded an eightfold jump compared to 2020. Below is an analysis of the amounts: Losses

Lina Khan points to Figma IPO as vindication of M&A scrutiny

A surprising figure is celebrating Figma’s successful IPO: Lina Khan, former chair of the Federal Trade Commission. In a Friday afternoon post on X, Khan linked to an article about Figma’s impressive first day of trading and argued the IPO is “a great reminder that letting startups grow into independently successful businesses, rather than be bought up by existing giants, can generate enormous value.” Khan was alluding to a $20 billion deal for Adobe to acquire Figma that fell through back in

Topics: adobe figma ftc ipo khan

Review: ShiftCam’s Fisheye lens is a fun way to capture wider shots on your iPhone

The iPhone is capable of capturing plenty of varying scenes, and has been for many years. Ever since iPhone 11 Pro, we’ve had a triple camera array, allowing for ultrawide, wide, and telephoto shots. Despite this, many companies still offer third party lens solutions for your iPhone, allowing you to capture even more with your iPhone. ShiftCam is one of those companies, and today I’ll be reviewing their LensUltra Fisheye lens. It’s like an Ultrawide, but with a bit more perspective. Overview

Lina Khan points to Figma IPO as vindication of M&A scrutiny

A surprising figure is celebrating Figma’s successful IPO: Lina Khan, former chair of the Federal Trade Commission. In a Friday afternoon post on X, Khan linked to an article about Figma’s impressive first day of trading and argued the IPO is “a great reminder that letting startups grow into independently successful businesses, rather than be bought up by existing giants, can generate enormous value.” Khan was alluding to a $20 billion deal for Adobe to acquire Figma that fell through back in

Topics: adobe figma ftc ipo khan

Proposed "Click to Cancel" Act tackles subscription traps with clearer cancellation rules (again)

What just happened? A court decision temporarily halted the rollout of the FTC's click-to-cancel rule last month, but the drive for greater transparency and simplicity for consumers navigating the subscription economy remains strong. State-level regulations on automatic renewals are still in effect in areas such as California and New York, and now federal lawmakers are once again turning their attention to this issue. Democratic lawmakers have introduced the Click to Cancel Act, a bill designed

US moves to ban shady subscription auto-renewals after FTC court loss

Canceling a subscription should be easy, Democratic lawmakers insisted Wednesday, introducing a bill to revive the Federal Trade Commission's so-called "Click-to-Cancel" rule. The FTC hoped to enforce the rule due to "increasing reports of consumers losing time and money from intentionally difficult subscription cancellation processes," lawmakers said. But cable companies sued to block the FTC rule last year, arguing that the FTC failed to conduct an economic impact study before making it easie

What you may have missed about Trump’s AI Action Plan

But if you dig deeper, certain parts of the plan that didn’t pop up in any headlines reveal more about where the administration’s AI plans are headed. Here are three of the most important issues to watch. Trump is escalating his fight with the Federal Trade Commission When Americans get scammed, they’re supposed to be helped by the Federal Trade Commission. As I wrote last week, the FTC under President Biden increasingly targeted AI companies that overhyped the accuracy of their systems, as we

America’s AI watchdog is losing its bite

It found that the security giant Evolv lied about the accuracy of its AI-powered security checkpoints, which are used in stadiums and schools but failed to catch a seven-inch knife that was ultimately used to stab a student. It went after the facial recognition company Intellivision, saying the company made unfounded claims that its tools operated without gender or racial bias. It fined startups promising bogus “AI lawyer” services and one that sold fake product reviews generated with AI. These

Topics: agency ai ftc house trump

Democrats are desperately trying to revive the click-to-cancel rule

is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform. Democratic lawmakers are taking multiple routes to try to revive the Federal Trade Commission’s “click-to-cancel” rule after an appeals court blocked it on procedural grounds right before it was set to take effect. Democrats already introduced legislation earlier this month to cod

Democrats are desperately trying to revive the click-to-cancel rule

is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform. Democratic lawmakers are taking multiple routes to try to revive the Federal Trade Commission’s “click-to-cancel” rule after an appeals court blocked it on procedural grounds right before it was set to take effect. Democrats already introduced legislation earlier this month to cod

Serial spyware founder Scott Zuckerman wants the FTC to unban him from the surveillance industry

The founder of a spyware company who was banned from the surveillance industry following an earlier data breach is now seeking to undo the ban, according to the Federal Trade Commission. In a notice on Friday, the federal watchdog said Scott Zuckerman sought to rescind or modify the 2021 ban imposed by the FTC on his company Support King and its subsidiaries. The ban included a provision requiring Zuckerman to maintain certain cybersecurity practices and undergo frequent audits for any of his

Trump's firing of Democratic FTC commissioner was unlawful, judge rules

Rebecca Kelly Slaughter, one of the Democratic FTC Commissioners President Trump had fired back in March, said she looks forward to getting back to work. US District Judge Loren AliKhan has just ruled that her removal from the agency was "unlawful and without legal effect" and that she was still a "rightful member" of the commission. The judge explained that the firings violated protections that prevent a president from unilaterally removing officials at independent agencies. In her statement a

Mark Zuckerberg and other Meta bigwigs just agreed to a settlement in $8 billion suit

Meta CEO Mark Zuckerberg, along with a group of current and former company directors and officers, just agreed to settle to end a trial that sought $8 billion in damages, according to a report by Reuters . Zuckerberg and the others will actually be paying out to Meta shareholders as a recompense for damages allegedly caused by allowing repeated violations of Facebook users' privacy. The parties have not disclosed the details of the settlement, but one would assume the payout was less than the $

'Click-to-cancel' rule is blocked

A “click-to-cancel” rule, which would have required businesses to make it easy for consumers to cancel unwanted subscriptions and memberships, has been blocked by a federal appeals court just days before it was set to go into effect. The Federal Trade Commission’s proposed changes, adopted in October, required businesses to obtain a customer’s consent before charging for memberships, auto-renewals and programs linked to free trial offers. The FTC said at the time that businesses must also disc