Investornewsbreaks Snap Inc. (NYSE: SNAP) Under FTC Scrutiny Over AI-Powered Chatbot

(MENAFN- Investor Brand Network) Snap (NYSE: SNAP) , the parent company of the widely-used social media platform Snapchat, is currently facing an investigation by the federal Trade Commission (“FTC”). The probe centers around Snap's AI-powered chatbot, My AI, which is integrated within Snapchat and has raised concerns about potential risks to young users. This has led to a complaint being referred to the Department of Justice, marking a significant development in the ongoing scrutiny of AI technologies and their impact on user safety.

Snap has responded to the FTC's allegations by highlighting what it perceives as inaccuracies in the complaint and a lack of substantial evidence. The company has expressed its dedication to ensuring that My AI is both beneficial to users and transparent in its operations. Snap's stance is that the complaint could hinder innovation and competition in the tech industry, and it has shown a willingness to collaborate with the new administration to develop AI policies that strike a balance between innovation and the safety of the community.

The situation is further complicated by the absence of two FTC commissioners, Andrew N. Ferguson and Melissa Holyoak, during the vote to refer the complaint. Ferguson has openly criticized the decision, describing the meeting as farcical, while Holyoak has voiced concerns about the closed-door nature of the meeting and the potential long-term impacts of such actions, especially in light of the transition to the Trump administration.

Despite these legal challenges, Snap's stock performance has remained a point of interest for investors. The company's shares reached a high of $11.19 on the New York Stock Exchange, indicating continued investor confidence in Snap's future prospects, even in the face of regulatory scrutiny.

To view the company's most recent earnings release, visit

About Snap Inc.

Snap is a technology company that believes the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit the company's website at .

About InvestorWire

InvestorWire (“IW”) is a specialized communications platform with a focus on advanced wire-grade press release syndication for private and public companies and the investment community. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers : (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries ; (2) article and editorial syndication to 5,000+ outlets ; (3) enhanced press release enhancement to ensure maximum impact ; (4) social media distribution via IBN to millions of social media followers ; and (5) a full array of tailored corporate communications solutions . With broad reach and a seasoned team of contributing journalists and writers, IW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today's market, IW brings its clients unparalleled recognition and brand awareness. IW is where breaking news, insightful content and actionable information converge.

For more information, please visit

Please see full terms of use and disclaimers on the InvestorWire website applicable to all content provided by IW, wherever published or re-published: /Disclaimer

InvestorWire
Austin, Texas

512.354.7000 Office
[email protected]

InvestorWire is powered by IBN

MENAFN27012025000224011066ID1109135405