The Federal Trade Commission has opened a formal inquiry into several major developers of AI companion chatbots. The investigation, which is not yet linked to any regulatory action, seeks to understand how these firms measure, test and monitor potential negative impacts on children and teens, as well as how they handle data privacy and compliance with the Children’s Online Privacy Protection Act. Seven companies—including Alphabet, Character Technologies, Meta, OpenAI, Snap and X.AI—have been asked to provide detailed information about their AI character development, monetization practices and safeguards for underage users.
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