WASHINGTON – The U.S. Federal Trade Commission (FTC) announced on Thursday that it has referred a complaint against Snap Inc. (SNAP.N) to the Justice Department. The complaint alleges that Snapchat’s use of an artificial intelligence chatbot, My AI, caused harm to young users.
The FTC did not disclose specifics about the alleged harm but stated that making the referral public was in the public interest.
A Snap spokesperson defended My AI, stating it adheres to “rigorous safety and privacy protocols” and criticized the FTC for “lacking concrete evidence.”
The FTC’s investigation reportedly found “reason to believe Snap is violating or is about to violate the law.” Following the announcement, Snap’s shares dropped 5.2%, closing at $11.22 on Thursday.
