WASHINGTON (Reuters) – The U.S. Federal Trade Commission has taken action against Snap Inc by referring a complaint to the Justice Department. The complaint alleges that the popular messaging app Snapchat utilized an artificial-intelligence chatbot, known as My AI, which purportedly caused harm to young users.
The consumer protection agency did not provide specific details regarding the nature of the harm allegedly caused by the My AI chatbot. However, they emphasized that making the transfer of the complaint to the Department of Justice public was deemed to be in the interest of the general public.
In response to the allegations, a spokesperson from Snap Inc defended the company’s practices, stating that My AI is subject to “rigorous safety and privacy processes.” Furthermore, the spokesperson contended that the FTC’s assertions were lacking in solid evidence to support their claims.
The Federal Trade Commission revealed that its investigation had uncovered grounds to suspect that Snap Inc may be in violation of existing laws or potentially on the brink of violating them. Subsequently, shares of Snap Inc experienced a decline, closing 5.2% lower at $11.22 on Thursday.
(Reporting by Jasper Ward and Doina Chiacu; Editing by Caitlin Webber, Rod Nickel, and Matthew Lewis)
