FTC Oversight Includes Treatment of Consumer Data, Potential Deceptive Practices
UNITED STATES October 1, 2026—The consumer watchdog agency, the Federal Trade Commission, is investigating artificial intelligence companies such as OpenAI and Anthropic, examining not only how children interact with the technology but also potential use of deceptive practices by firms.
The investigation is not surprising given widespread concerns voiced by industry insiders and the public over the seemingly unlimited power of AI. Recent news stories on hacking and autonomous AI agents have fueled controversy.
The New York Times, citing an unnamed source, reports that the FTC is examining whether companies are complying with laws related to fair and deceptive practices as well as laws protecting consumer data.
Reuters reported this week that Anthropic is concerned about legal consequences for the firm if customers experience rogue AI agents. The firm is preparing paperwork for what could be the largest initial public offering as early as November. It is seeking a valuation of more than $2 trillion. According to Reuters, Anthropic is warning investors of potential “catastrophic or existential risks to humanity.”
Holding Humans Accountable
Addressing a conference on AI in Austin, Texas in late September, FTC Chairman Andrew Ferguson resisted the notion that AI can go rogue on its own. Ultimately, companies and the humans who use AI are responsible.
“My view is, when we talk about agentic AI, that can be a useful way to describe a new tool that’s available for human beings,” Ferguson said. “If someone tells a tool to do something and the tool does it, I don’t think we would say, ‘Oh what do we do about the tool?’”
One of the FTC investigations is a market study on how chatbots interact with children, which Ferguson said he expects to release in early 2027. Another avenue is similar to a recent case on Amazon.com, which resulted in refunds for consumers, the FTC will look at potential use of deceptive practices.
“Deception is the enemy of free and fair markets, which is why the FTC’s work is so important. And I don’t think that it is going to be less true for AI development than it is for anybody else,” Ferguson said.
