FTC Probes AI Chatbots' Hidden Risks to Children’s Privacy and Safety

The Federal Trade Commission (FTC) has launched a formal inquiry into the use of AI chatbots and their potential risks to children’s safety and privacy, signaling growing regulatory scrutiny over the rapid deployment of artificial intelligence in consumer-facing platforms. The probe, initiated in the wake of mounting public and legislative pressure, seeks to evaluate whether major tech firms are adequately safeguarding minors from exposure to inappropriate content, manipulation, or data misuse through AI-driven interactions.

The FTC’s interest has been driven by reports of children using chatbots to access potentially harmful or misleading information, ranging from mental health advice to discussions on violence and self-harm. Several advocacy groups and child safety organizations have raised alarms about the lack of transparency in how AI systems respond to queries from minors and the absence of standardized safeguards. The agency is reportedly reviewing whether chatbot developers have implemented appropriate age verification mechanisms, content filtering, and user consent protocols in alignment with existing child protection laws.

Major tech firms, including those with widely used AI assistants, have been summoned to provide information on their design and moderation practices. According to internal company disclosures, many chatbots lack a consistent mechanism for identifying or limiting interactions with underage users, raising concerns about the scalability of manual oversight in AI environments. Some platforms have deployed AI moderation tools, but these too face criticism for inconsistent enforcement and the potential for biased outcomes.

The inquiry also touches on the broader issue of data collection and usage by chatbots. Child users often share personal details in their conversations with AI systems, prompting questions about whether such data is being stored, analyzed, or used to train future models without proper parental consent. The FTC is examining whether current data privacy laws, including the Children’s Online Privacy Protection Act (COPPA), are sufficient to address the unique challenges posed by AI-driven interactions, or if new legislative measures are required.

Industry analysts have noted that the outcome of the inquiry could shape the regulatory landscape for AI in the coming years, potentially leading to new mandates for chatbot transparency, user controls, and algorithmic accountability. The agency’s findings could also influence the development of international standards, as similar concerns have been raised in the European Union and other jurisdictions. For now, the FTC’s investigation remains in its early stages, with no timeline yet announced for the release of its findings or proposed recommendations.