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FTC Investigates AI Chatbots Acting as Consumer Companions

The Federal Trade Commission (FTC) has announced that it has issued requests to several companies operating AI chatbots, including platforms widely used by consumers as virtual companions. These requests, made under Section 6(b) of the FTC Act, aim to uncover how these chatbots function, how they interact with users, and what kinds of personal data they collect, store, and monetize.

FTC Section 6(b) Requests for AI Chatbot Companies

On September 11, 2025, the FTC issued formal orders under Section 6(b) of the FTC Act requiring companies to disclose detailed information about the inner workings of AI companion chatbots.

Importantly, these requests are not tied to any current lawsuit or criminal investigation. Instead, Section 6(b) gives the FTC broad authority to demand documents, data, and testimony in order to conduct research and evaluate whether companies’ policies and practices comply with consumer protection standards.

The FTC’s requests focus on several key areas, including:

  • How companies monetize user interactions with AI chatbots
  • How AI chatbots process user inputs and generate responses
  • How companion chatbots develop unique personalities in conversations
  • Testing and safety measures for chatbot responses
  • Terms of service, community guidelines, and enforcement of age restrictions, particularly for minors
  • How chatbots communicate their capabilities and limitations to users
  • What personal information chatbots collect, and how that information is stored, shared, or used

Why AI Companion Chatbots Are Under Scrutiny

This inquiry may shed light on how AI companion chatbot platforms truly operate, potentially leading to new FTC guidelines, regulations, or even litigation if deceptive or unsafe practices are uncovered.

For consumers, these disclosures could bring much-needed transparency. Users may soon learn not only how AI chatbots adapt to create individualized, human-like personalities, but also what personal information is being harvested during conversations—and where that data ultimately goes.

This is especially significant because many younger users are drawn to AI companions for emotional support, conversation, and advice. Knowing what safeguards exist for protecting minors, limiting data retention, and destroying sensitive information could provide peace of mind—or prompt stricter oversight of AI companion technology.

What This Means for Consumers

The FTC’s AI chatbot investigation has the potential to reshape the future of digital companionship. As more people rely on AI-powered platforms for conversation and emotional connection, transparency about data privacy, security, and age protections will be critical.

Consumers should stay informed as the FTC’s findings may not only reveal the hidden practices behind AI chatbots but also lead to stronger protections for user privacy in the rapidly growing AI industry.

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