FTC Refers Snap Complaint to Justice Department

The Federal Trade Commission (FTC) has referred a complaint against Snap Inc. to the Department of Justice, citing potential risks and harms posed by Snapchat's My AI chatbot to young users. The specifics of the alleged harms remain undisclosed, but the FTC emphasized its duty to act in the public interest by making this referral public. This action follows a previous settlement in 2014 related to deceptive messaging practices on Snapchat. The referral indicates that Snap may be on the verge of legal violations, and it highlights the increasing scrutiny of tech companies regarding the safety of their products for younger audiences. Snap's stock experienced brief fluctuations following the announcement, but stabilized by the end of the trading session. The company has not yet issued a public response to the referral.