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FTC Flags Snap's AI Risks, Shares Plummet 5%

1/17/2025

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Summary

Story summary

The FTC has referred a complaint against Snap Inc. to the Department of Justice regarding its My AI chatbot's risks to young users.
Following the announcement, Snap's shares dropped by 5%.
The complaint arises from FTC compliance reviews related to a 2014 settlement.
Snap contests the complaint, asserting it lacks evidence and infringes on First Amendment rights, potentially stifling AI innovation.

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Story summary

The FTC has referred a complaint against Snap Inc. to the Department of Justice regarding its My AI chatbot's risks to young users.
Following the announcement, Snap's shares dropped by 5%.
The complaint arises from FTC compliance reviews related to a 2014 settlement.
Snap contests the complaint, asserting it lacks evidence and infringes on First Amendment rights, potentially stifling AI innovation.