The Federal Trade Commission (FTC) has initiated an inquiry into seven companies that operate consumer-facing AI companion chatbots, issuing 6(b) orders to gather information. The inquiry focuses on how these firms measure, test, and monitor potential negative impacts of their AI technology, particularly regarding children and teenagers, and their compliance with the Children’s Online Privacy Protection Act Rule.
For AI chatbot providers, the FTC is now examining product design, testing, disclosures, and data handling in one sweep, with children and teens at the center. That matters because the agency is explicitly asking how these systems simulate relationships and whether companies limit underage use or meet COPPA obligations. The broader signal is that consumer-facing generative AI is moving into a more formal consumer-protection review. Watch for the 7 companies’ responses to the 6(b) orders, especially on age restrictions, moderation, and how user conversations are used or shared.
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