The FTC is escalating concerns over Snap’s AI chatbot to the DOJ

The Federal Trade Commission (FTC) has escalated concerns about Snap’s AI chatbot to the Department of Justice (DOJ), citing potential privacy violations related to a 2014 settlement agreement.

Key developments: The FTC’s investigation into Snap’s compliance with a decade-old privacy settlement has led to serious concerns about the company’s My AI chatbot feature.

• The agency has indicated it has found evidence suggesting Snap is either currently violating or on the verge of violating privacy laws
• This referral to the DOJ represents a significant escalation in regulatory scrutiny of AI-powered social media features
• The investigation specifically focuses on the My AI chatbot, which was introduced as a feature for Snapchat users

Company response: Snap has taken a defensive stance against the FTC’s actions, directly challenging the validity of the investigation’s findings.

• Snap spokesperson Monique Bellamy has publicly disputed the FTC’s position, stating the complaint is based on inaccuracies
• The company claims the FTC lacks concrete evidence to support its allegations
• Snap appears prepared to contest any potential enforcement actions

Regulatory context: This development occurs within the broader framework of increasing government oversight of AI technologies in social media platforms.

• The original 2014 settlement serves as the foundation for the current investigation
• The FTC’s decision to refer the matter to the DOJ suggests potential serious violations of the earlier agreement
• This action could signal stricter enforcement of privacy regulations for AI features across social media platforms

Looking ahead: The DOJ’s handling of this referral could set important precedents for how privacy regulations are enforced in the rapidly evolving landscape of AI-powered social media features, particularly those targeting younger users who comprise a significant portion of Snapchat’s user base.