US FTC refers complaint about Snapchat use of AI chatbot to Justice Department

WASHINGTON (Reuters) -The U.S. Federal Trade Commission said on Thursday it has referred to the Justice Department a complaint against Snap Inc (NYSE:SNAP) that alleges its messaging app Snapchat used an artificial-intelligence chatbot that harmed young users.

The consumer protection agency provided no further detail on the alleged harm from the My AI chatbot, but said publicizing the transfer of the complaint to the DOJ was in the public interest.

A Snap spokesperson said My AI incorporates “rigorous safety and privacy processes” and said the FTC “lacks concrete evidence.”

The FTC said its investigation “uncovered reason to believe Snap is violating or is about to violate the law.”

Snap shares ended 5.2% lower at $11.22 on Thursday.