FTC Probes AI Chatbots’ Mental Health Risks on Children

TheCryptoTimesPublished on 2025-09-04Last updated on 2025-09-04

The U.S. Federal Trade Commission (FTC) is looking into the mental health risks that robots made by artificial intelligence pose to children. The FTC is focusing on OpenAI, Meta Platforms, and Character.AI, among other tech companies. 

The investigation, which was announced on September 4, 2025, will look into how these AI systems might be able to interact in harmful ways. Official requests for internal company papers will be made.

The investigation stems from growing concerns over AI chatbots providing inappropriate or dangerous content to young users. According to a report from The Wall Street Journal, regulators are focused on instances of AI engaging in provocative conversations and acting as unlicensed “therapy bots.” This federal action follows several recent developments, including a Reuters exclusive weeks ago which found Meta’s chatbots could initiate “conversations that are romantic or sensual” with minors. 

Furthermore, a coalition of over 20 consumer advocacy groups filed a formal complaint in June, and Texas Attorney General Ken Paxton launched a separate investigation last month.

Industry Response and Regulatory Context

In answer to the growing attention, some businesses have started to do something. Meta added new safety features to its AI products last week to keep young users safe. Kindness.AI also said that it looks forward to “working with regulators and lawmakers as they begin to consider legislation for this emerging space,” even though it hasn’t gotten a letter from the FTC yet.

The FTC’s probe aligns with a broader push by the U.S. government to establish clear rules for the rapidly advancing AI sector. While talking about the administration’s goal “to cement America’s dominance in AI, cryptocurrency, and other cutting-edge technologies of the future,” a White House spokesperson recently said that governmental oversight is seen as a key part of fostering long-term innovation.

This investigation is a big step forward for U.S. regulators in the AI area. The FTC is sending a message that AI makers will be held responsible for outcomes on specific harms that affect a vulnerable group. 

It could set important examples for safety, design, and openness in AI that people interact with. This could force tech companies to include moral and mental health protections from the start of their development processes instead of adding them as an afterthought.

Also read: Meta Freezes AI Hiring Amid Cost Concerns and Restructuring


Mobile Only Image

Related Reads

SociFi Dream Shattered? Farcaster Pivots to Bet on Wallet Track

Farcaster, a decentralized social network protocol, has announced a major strategic shift after 4.5 years, abandoning its "social-first" approach to adopt a "wallet-first" growth model. Co-founder Dan Romero acknowledged that despite initial success—such as a surge to 100,000 daily active users (DAU) in early 2024 driven by features like Frames and the DEGEN airdrop—user engagement and revenue sharply declined later that year. By October 2025, monthly revenue had dropped 99% from its peak. The platform will now prioritize building a high-quality wallet within its official app, Warpcast, focusing on the intersection of wallets and social interaction. The new user journey emphasizes wallet funding and utility as key activation points. Farcaster is also enhancing its financial infrastructure through the acquisition of token launch platform Clanker and offering incentives like a 10% reward on USDC deposits. Frames, interactive mini-apps within the social feed, enable "content as transaction" capabilities, allowing users to mint, trade, and pay directly in their feeds. Despite raising $150 million in a 2024 Series A round at a $1 billion valuation, the move has drawn criticism. Some argue it signals the end of the SocialFi dream and a return to a transaction-focused model reminiscent of the 2017 ICO era. Others note challenges in a competitive wallet market and potential feature bloat. Farcaster remains an open protocol, and users can choose alternative clients, but the shift underscores a broader industry reality: pure Web3 social networks may struggle without integrating high-value financial tools to drive user engagement and retention.

marsbitHace 11 min(s)

SociFi Dream Shattered? Farcaster Pivots to Bet on Wallet Track

marsbitHace 11 min(s)

12.9 Today's Market: Why the Drop? BTC\SOL\ETH\BNB\RDNT\STABLE\TRUMP\Horse to Success\bibi Trading Advice

The cryptocurrency market experienced significant volatility, with $212 million in liquidations over 24 hours, including a single $2.14 million Bitcoin liquidation on Hyperliquid. Market sentiment remains nervous, with high turnover reflecting short-term bearishness, though long-term holders remain steady. The Federal Reserve's upcoming meeting is a key focus, as interest rate decisions may influence market direction. Bitcoin’s support is near $88,100, with a potential dip to $85,200–85,900 offering a buying opportunity. Resistance is at $93,400. SOL may see support at $125.8 and $124, with potential accumulation near $120. ETH has supports at $2,955, $2,865, and $2,805, with resistance at $3,282. BNB’s key level is $898; holding above may lead to a bounce toward $939. Meme coins are highly risky, with many projects on BSC and SOL facing extreme volatility and potential scams. High-cap tokens like BIBI are relatively safer. Patience and strict stop-losses are advised. Specific tokens: - 马到成功 (Horse to Success): Accumulating near $2M market cap with strong community support. - ZEC: Showing strength, possibly entering a major upward trend if it holds key levels. - RDNT: Avoid chasing pumps—likely a temporary bounce. - TRUMP: Unlikely to rally this cycle due to locked supply; may perform in the next bull market if Trump remains politically relevant. - STABLE: Bearish due to high fully diluted valuation and lack of catalysts; consider shorting. Overall, December is to accumulate during consolidation while preserving capital for larger opportunities in Q1 2026.

金色财经Hace 20 min(s)

12.9 Today's Market: Why the Drop? BTC\SOL\ETH\BNB\RDNT\STABLE\TRUMP\Horse to Success\bibi Trading Advice

金色财经Hace 20 min(s)

Financial On-Chain Transformation: A Blueprint for the Overhaul of the U.S. Capital Market

The article "Financial On-Chaining: A Blueprint for the Transformation of U.S. Capital Markets" explores the potential systemic overhaul if the U.S. financial system migrates to blockchain technology, as suggested by SEC Chair Paul Atkins. It outlines seven key structural shifts: 1. Market Dynamics: Transition to T+0 settlement, enabling 24/7 trading and real-time regulatory oversight by the SEC, increasing capital velocity but eliminating traditional market buffers. 2. Banking Sector: Banks would operate with near-transparent balance sheets, reducing risks like asset-liability mismatches but potentially accelerating bank runs. Programmable collateral could unlock new financing efficiency. 3. Real Economy: Democratization of assets through fractional ownership and "micro-IPOs" for SMEs, injecting liquidity premium into U.S. assets. 4. Geopolitics: Digital reinforcement of dollar dominance via tokenized Treasuries and money market funds, attracting global capital through efficiency and transparency. 5. Risk Evolution: Systemic risks would shift from human-driven panics to technical failures (e.g., smart contract bugs, oracle manipulation), making crises faster and more technical. 6. Winners and Losers: Infrastructure builders, new asset managers, and hybrid talent would thrive; traditional intermediaries and opaque industries would decline. 7. Realistic Timeline: Full adoption in two years is unlikely due to technical, legal, and political hurdles, but gradual implementation (e.g., in Treasuries, repos) is inevitable as efficiency drives change.

比推Hace 33 min(s)

Financial On-Chain Transformation: A Blueprint for the Overhaul of the U.S. Capital Market

比推Hace 33 min(s)

Trading

Spot
Futures
活动图片