Snap’s stock dropped 5% after the FTC referred a complaint about its MyAI chatbot to the DOJ, raising concerns over user safety.

Washington: Snap’s shares took a hit recently, dropping 5% after the FTC decided to send a complaint about its MyAI chatbot to the DOJ. This complaint raises some serious concerns about the safety of young users.
The FTC claims that the MyAI chatbot could pose risks to kids. This complaint is part of a broader review of Snap’s practices, which dates back to a 2014 settlement over data collection issues.
According to the FTC, they found evidence suggesting Snap might be breaking the law. They believe that addressing this issue is in the public’s best interest.
While the FTC didn’t go into specifics about the chatbot’s issues, it has faced criticism before. A Snap spokesperson defended the company, saying the complaint is based on inaccuracies and lacks solid evidence.
They argued that the complaint could hinder innovation in the growing field of generative AI. Snap launched the MyAI chatbot in 2023, which uses advanced language models to interact with users.
However, the chatbot has had its share of problems. For instance, it once gave advice on hiding the smell of alcohol and marijuana to a reporter posing as a teenager. Snap acknowledged that MyAI can sometimes provide misleading information.
Back in 2013, the UK’s Information Commissioner’s Office also raised concerns about Snap’s risk assessment related to MyAI, especially regarding children’s data protection.
The FTC’s decision to refer the case to the DOJ was made during a closed meeting, and two commissioners were absent. One of them, Andrew Ferguson, expressed his disagreement with the complaint and mentioned that he couldn’t share detailed criticisms since the case isn’t public yet.
If the DOJ moves forward with the complaint, Ferguson promised to provide a more thorough analysis of the situation.