FTC Launches Inquiry into AI ‘Companion’ Chatbots — Focus on Risks to Children and Teens

FTC Launches Inquiry into AI ‘Companion’ Chatbots: The FTC has launched an inquiry into consumer-facing AI chatbots to assess risks to children and teens — what regulators are asking and what parents should know.

FTC investigation 2025: FTC Launches Inquiry into AI ‘Companion’ Chatbots

The U.S. Federal Trade Commission (FTC) has issued formal orders to multiple companies that operate consumer-facing AI chatbots, launching a wide inquiry into how these systems are tested, monitored, and marketed — with particular focus on potential harms to children and teenagers. The action follows growing concern from parents, researchers, and policymakers about how “companion” chatbots can affect young users’ mental health, privacy, and behavior.

According to the FTC’s public notice, the agency wants detailed information from companies on the steps they take to limit minors’ access, how harms are identified and mitigated, the datasets used in training, and whether the companies disclose risks to parents and guardians. The orders aim to assess whether current products comply with consumer-protection and child-safety expectations, and to identify patterns that might require rulemaking or enforcement.

http://tc.gov/news-events/news/press-releases/2025/09/ftc-chairman-ferguson-issues-noncompete-warning-letters-healthcare-employers-staffing-companies

Industry reaction was cautious. Some companies said they welcome constructive engagement with regulators and pointed to age-gating, content filters, and parental controls already in place. Consumer advocates — along with pediatric and mental-health experts — argued that voluntary safety measures have proven uneven: AI systems can still produce misleading or emotionally manipulative output, and teens may form attachments to agents that are not designed for clinical support.

Legal analysts say the FTC’s inquiry could lead to several outcomes: targeted enforcement actions against companies that misrepresent safety features; guidance or rules on marketing to minors; and potential requirements for transparency about training data and testing procedures. Policymakers on both sides of the aisle have recently expressed interest in establishing stronger guardrails for AI tools used by children, raising the possibility of new federal standards.

FTC child protection rules

For parents and schools, experts recommend immediate practical steps: monitor app and device use, enable available parental controls, talk with children about online interactions, and seek professional help if a child shows signs of emotional distress linked to online AI interactions. The FTC stressed that its inquiry is fact-finding and not an immediate enforcement action, but its findings could prompt faster regulatory moves.

https://aamnewsnetwork.com/governing-with-ai-key-takeaways-from-the-oecds-new-guidance-and-what-it-means-for-india/

What to watch next: companies’ responses to FTC orders; whether Congress pursues parallel legislation; industry moves to adopt stronger child-safety standards; research on long-term effects of AI companions on youth mental health.