Source: Law360

The Federal Trade Commission (FTC) has referred its investigation into Snap’s AI-powered chatbot to the Department of Justice (DOJ), citing concerns over potential violations of consumer protection laws. The case involves allegations that Snap’s chatbot may have mishandled user data and failed to meet transparency requirements in its operations.

The FTC’s decision follows complaints from advocacy groups and users about the chatbot’s privacy practices and its lack of adequate disclosures regarding data collection and usage. The referral to the DOJ marks an escalation, signaling the seriousness of the potential violations.

The article highlights broader concerns about the regulatory challenges posed by AI-driven consumer technologies, particularly in balancing innovation with the protection of user rights. Snap has responded by asserting its compliance with applicable regulations and committing to cooperation with authorities.

This case underscores the increasing scrutiny of AI applications in consumer-facing technologies and the growing importance of robust legal frameworks to ensure accountability and fairness.