US FTC refers Snapchat complaint over AI chatbot to Justice Dept
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The U.S. Federal Trade Commission has referred a complaint against Snap, Inc. to the Justice Department. The complaint alleges that Snapchat's AI chatbot has caused harm to young users.
January 16, 2025 | 8:45 pm
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Snap, Inc. faces a legal challenge as the FTC refers a complaint to the Justice Department. The complaint alleges that Snapchat's AI chatbot has harmed young users, which could lead to regulatory scrutiny and potential legal consequences.
The referral of a complaint by the FTC to the Justice Department indicates serious legal and regulatory challenges for Snap, Inc. This could lead to increased scrutiny and potential penalties, negatively impacting investor sentiment and the stock price in the short term.
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