FTC Refers Complaint Against Snapchat to DOJ Over “My AI” Feature

by

I was quite surprised when I learned that the Federal Trade Commission has passed on a complaint about Snapchat‘s parent company, Snap Inc., to the Department of Justice. This move is certainly out of the ordinary, but it highlights the FTC’s commitment to ensuring fair competition and consumer protection in the tech industry.

The Commission didn’t provide specific information, but mentioned that it concerns the use of a chatbot called My AI, which is part of the Snapchat app and powered by artificial intelligence. They also hinted at potential dangers and issues this implementation may have caused for young users of the application.

My AI, powered by OpenAI technology, enables Snapchat users to converse and pose queries directly within the Snapchat application. The feature was introduced in 2023, with the company reporting that it’s being used by millions of their active users.

A representative from Snap informed The Hollywood Reporter that the claim is founded on errors and lacks solid proof. Moreover, it doesn’t specify any actual damage and raises significant First Amendment issues.

Referrals from the Department of Justice (DOJ) are usually kept confidential until charges are officially brought forward. In their statement, the Federal Trade Commission (FTC) mentioned that while they don’t typically disclose referrals, this time they believe it’s beneficial to the public to do so.

The referral – initiated prior to the Biden administration relinquishing control of the DOJ to the Trump administration – might not progress, especially considering a remark from GOP commissioner Andrew Ferguson who declared that he “was not involved in the questionable closed meeting where this issue was endorsed.

Ferguson is set to replace Lina Khan as FTC chair when Trump is inaugurated.

The Commission unanimously agreed (3 votes) to approve the publication of the statement, but Ferguson and Commissioner Melissa Holyoak were not present during the vote.

Since the grievance hasn’t been made public yet, I can’t currently provide an in-depth critique of its issues. However, I can share that the way the complaint has interpreted Section 5 of the Federal Trade Commission Act is not only incorrect in terms of legal interpretation, but it directly contradicts the protections provided by the First Amendment.

Over the past year, the Federal Trade Commission (FTC) has been intensely scrutinizing advancements in Artificial Intelligence (AI) technology. Notably, last year, Reddit publicly revealed that the FTC had initiated contact regarding their agreements to license AI training data for Large Language Models (LLMs).

Ever since the debut of our AI, Snap has utilized stringent safety and privacy protocols to fashion a tool that not only serves our user base effectively, but does so in an open and understandable manner regarding its functions and limitations, as stated by a Snap representative. Regrettably, on the final day of this administration, the FTC voted on a proposed complaint without taking into account any of these endeavors. This decision is flawed, as it relies on misinformation, lacks solid evidence, fails to pinpoint any actual damage, and raises significant First Amendment issues.

We have similar goals as the FTC regarding the careful creation of AI technology. However, this complaint might hinder progress and competition in an essential and rapidly expanding economic sector. We’re excited to collaborate with the new administration on AI policies that encourage American innovation while safeguarding our community.

Read More

2025-01-17 01:54