FTC Launches Inquiry into AI Chatbots Acting as Companions

A client alert from DLA Piper describes a step taken by the Federal Trade Commission on September 11. The agency issued Section 6(b) orders, with seven firms operating consumer-facing generative AI companion chatbots, and the Commission voted 3-0 to issue them. The alert follows an earlier one in which the firm had noted that Commissioner Melissa Holyoak urged a market study of companion bots and their effect on children's mental health.

The alert explains that Section 6(b) lets the agency run market studies by demanding documents and information from a small group of firms, often five to ten. The orders are enforceable in federal court, though recipients may petition to limit or quash them. Such a study is not a law enforcement investigation, but it can shape later enforcement under the ban on deceptive or unfair conduct and can prompt legislation. The usual product is a staff report, which can take years to reach the public.

According to the alert, the orders seek details on product features and personas, advertising and disclosures, monetization and engagement tactics, age restrictions and parental controls, safety testing and monitoring, character approval and sensitive content, and complaint handling, with particular attention to children and teens. Commissioner Mark Meador's statement says chatbots are products like any other and that makers must follow consumer protection law.

The alert also reports that California's legislature passed SB 243 the same day and sent it to the governor. If signed, it would take effect January 1, 2026, and require safety protocols, recurring reminders that the user is talking to an AI, annual reporting, audits and a route for harmed people to seek relief. It further mentions a letter from 44 attorneys general to 13 companies.