Divided FTC Refers Complaint Against Snap’s AI Chatbot to Justice Department

The Federal Trade Commission (FTC) said Thursday (Jan. 16) that it referred a complaint against Snapchat operator Snap to the Department of Justice.

“The complaint pertains to the company’s deployment of an artificial intelligence [AI] powered chatbot, My AI, in its Snapchat application and the allegedly resulting risks and harms to young users of the application,” the FTC said in a statement.

The statement said an FTC investigation “uncovered reason to believe Snap is violating or is about to violate the law and that a proceeding is in the public interest.”

The FTC said in a Thursday press release that it issued the statement about the referral after the commission voted 3-0-2 to do so in a closed-door meeting. Two commissioners were absent.

“Although the Commission does not typically make public the fact that it has referred a complaint, we have determined that doing so here is in the public interest,” the statement said.

Reached by PYMNTS, a Snap spokesperson said in an emailed statement that it has worked to make My AI beneficial for its community while also being transparent about the product’s capabilities and limitations.

“Unfortunately, on the last day of this Administration, a divided FTC decided to vote out a proposed complaint that does not consider any of these efforts, is based on inaccuracies, and lacks concrete evidence,” the statement said. “It also fails to identify any tangible harm and is subject to serious First Amendment concerns.”

Snap added that the FTC’s complaint would stifle innovation and competition.

“We look forward to working with the new Administration on AI policy that bolsters U.S. innovation while protecting our community,” the statement said.

One of the FTC commissioners who were absent from the closed-door meeting, Andrew N. Ferguson, said in a Thursday statement that the commission’s announcement of its referral of a complaint is an “unusual step.”

“I did not participate in the farcical closed meeting at which this matter was approved, but I write to note my opposition to the complaint against Snap,” Ferguson said. “Because the complaint itself remains non-public, I cannot at this time release a detailed analysis of its many problems.”

The other commissioner who was absent, Melissa Holyoak, said in a Thursday statement that she voted against holding the closed meeting because the commission should be focused on facilitating an orderly transition to the Trump administration.

“Certain actions, such as initiating litigation or continuing proposed rulemakings, will have long-lasting consequences for the incoming administration, diverting already scarce Commission resources to defend misguided policy objectives and novel legal theories,” Holyoak said.

Snap debuted My AI in February 2023, saying the chatbot can help users but also warning that it “is prone to hallucination and can be tricked into saying just about anything.”