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FTC to AI Companies: Tell Us How You Protect Teens and Kids Who Use AI Companions

As more teens turn to AI for companionship, the investigation comes as no surprise.

The Federal Trade Commission is launching an investigation into AI chatbots from seven companies, including Alphabet, Meta and OpenAI, over their use as companions. The inquiry involves finding how the companies test, monitor and measure the potential harm to children and teens. 

A Common Sense Media survey of 1,060 teens in April and May found that over 70% used AI companions and that more than 50% used them consistently — a few times or more per month. 

Experts have been warning for some time that exposure to chatbots could be harmful to young people. A study revealed that ChatGPT, for instance, provided bad advice to teenagers, like how to conceal an eating disorder or how to personalize a suicide notes. In some cases, chatbots have ignored comments that should have been recognized as concerning, instead simply continuing the previous conversation. Psychologists are calling for guardrails to protect young people, like reminders in the chat that the chatbot is not human, and for educators to prioritize AI literacy in schools.

There are plenty of adults, too, who’ve experienced negative consequences of relying on chatbots — whether for companionship and advice or as their personal search engine for facts and trusted sources. Chatbots more often than not tell what it thinks you want to hear, which can lead to flat-out lies. And blindly following the instructions of a chatbot isn’t always the right thing to do. 

«As AI technologies evolve, it is important to consider the effects chatbots can have on children,» FTC Chairman Andrew N. Ferguson said in a statement. «The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children.»

A Character.ai spokesperson told CNET every conversation on the service has prominent disclaimers that all chats should be treated as fiction.

«In the past year we’ve rolled out many substantive safety features, including an entirely new under-18 experience and a Parental Insights feature,» the spokesperson said.


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The company behind the Snapchat social network likewise said it has taken steps to reduce risks. «Since introducing My AI, Snap has harnessed its rigorous safety and privacy processes to create a product that is not only beneficial for our community, but is also transparent and clear about its capabilities and limitations,» the spokesperson said.

Meta declined to comment, and neither the FTC nor any of the remaining four companies immediately responded to our request for comment. The FTC has issued orders and is seeking a teleconference with the seven companies about the timing and format of its submissions no later than Sept 25. The companies under investigation include the makers of some of the biggest AI chatbots in the world or popular social networks that incorporate generative AI: 

  • Alphabet (parent company of Google)
  • Character Technologies 
  • Instagram
  • Meta Platforms
  • OpenAI
  • Snap
  • X.ai

Starting late last year, some of those companies have updated or bolstered their protection features for younger individuals. Character.ai began imposing limits on how chatbots can respond to people under the age of 17 and added parental controls. Instagram introduced teen accounts last year and switched all users under the age of 17 to them and Meta recently set limits on subjects teens can have with chatbots.

The FTC is seeking information from the seven companies on how they:

  • monetize user engagement
  • process user inputs and generate outputs in response to user inquiries
  • develop and approve characters
  • measure, test, and monitor for negative impacts before and after deployment
  • mitigate negative impacts, particularly to children
  • employ disclosures, advertising and other representations to inform users and parents about features, capabilities, the intended audience, potential negative impacts and data collection and handling practices
  • monitor and enforce compliance with Company rules and terms of services (for example, community guidelines and age restrictions) and
  • use or share personal information obtained through users’ conversations with the chatbots

Technologies

If You Were ‘Tricked’ Into an Amazon Prime Subscription, You Should Have Been Paid by Today

Amazon is paying $1.5 billion to people who mistakenly subscribed to Prime, and the first round of payments are due today.

Amazon Prime provides a lot of valuable benefits to its members, but the company’s registration practices for its premium subscription from 2019 to 2025 led to many customers accidentally subscribing to a service they didn’t want.

Amazon is now paying the price for that deception — the US Federal Trade Commission levied a massive $2.5 billion settlement on the company for its subscription tactics.

The majority of the settlement — $1.5 billion — has been earmarked to refund eligible subscribers, with the rest serving as a civil penalty. Amazon is also now legally required to provide a clear, obvious option to decline Prime, making it as easy to leave the service as it is to join.

Amazon isn’t admitting to shady behavior. «Amazon and our executives have always followed the law, and this settlement allows us to move forward and focus on innovating for customers,» Mark Blafkin, Amazon senior manager, said in a statement. «We work incredibly hard to make it clear and simple for customers to both sign up or cancel their Prime membership, and to offer substantial value for our many millions of loyal Prime members around the world.»

The online retail giant started sending out payments to eligible people in November and was supposed to conclude its initial automatic payments today, Dec. 24. Read on to learn more about Amazon’s settlement and what to do if you think you’re eligible for compensation but didn’t receive a payment.

Why did the FTC fine Amazon?

The FTC filed suit against Amazon, accusing the company of using «dark patterns» to nudge people into Prime subscriptions and then making it too hard to cancel. The FTC maintained Amazon was in violation of Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act

«Specifically, Amazon used manipulative, coercive or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions,» the FTC complaint stated.

Who’s eligible for Amazon’s payout?

Amazon’s legal settlement is limited to customers who enrolled in Amazon Prime between June 23, 2019, and June 23, 2025. It’s also restricted to customers who subscribed to Prime using a «challenged enrollment flow» or who enrolled in Prime through any method but were unsuccessful in canceling their memberships.

The FTC called out specific enrollment pages, including Prime Video enrollment, the Universal Prime Decision page, the Shipping Option Select page and the Single Page Checkout. To qualify for a payout, claimants must also not have used more than 10 Amazon Prime benefits in any 12-month period.

Customers who signed up via those challenged processes and did not use more than three Prime benefits within one year will be paid automatically by Amazon within 90 days. Other eligible Amazon customers will need to file a claim, and Amazon is required to send notices to those people within 30 days of making its automatic payments.

If you are eligible for the automatic payment, you should have received an email from Amazon by today explaining how to claim the money. You can be paid via PayPal or Venmo. If you prefer a paper check, don’t accept the digital payment. The FTC says Amazon will mail you a check that you must cash within 60 days.

How big will the Amazon payments be?

Payouts to eligible Amazon claimants will be limited to a maximum of $51. That amount could be reduced depending on the number of Amazon Prime benefits you used while subscribed to the service. Those benefits include free two-day shipping, watching shows or movies on Prime Video or Whole Foods grocery discounts. 

Customers who qualify for the payments should have received them from Nov. 12 to Dec. 24, 2025.If you are eligible for compensation from Amazon but didn’t receive a payout, you’ll need to file a claim after Amazon starts the claim process. The FTC says it will update its Amazon settlement site once that process has begun.

Customers who did not use a challenged sign-up process but instead were unable to cancel their Prime memberships will also need to file claims for payment.

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Technologies

Today’s NYT Connections: Sports Edition Hints and Answers for Dec. 25, #458

Here are hints and the answers for the NYT Connections: Sports Edition puzzle for Dec. 25, No. 458.

Looking for the most recent regular Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle and Strands puzzles.


Today’s Connections: Sports Edition has a real mix of categories, including one that’s all about a certain famous athlete. If you’re struggling with today’s puzzle but still want to solve it, read on for hints and the answers.

Connections: Sports Edition is published by The Athletic, the subscription-based sports journalism site owned by The Times. It doesn’t appear in the NYT Games app, but it does in The Athletic’s app. Or you can play it for free online.

Read more: NYT Connections: Sports Edition Puzzle Comes Out of Beta

Hints for today’s Connections: Sports Edition groups

Here are four hints for the groupings in today’s Connections: Sports Edition puzzle, ranked from the easiest yellow group to the tough (and sometimes bizarre) purple group.

Yellow group hint: Swing away!

Green group hint: What’s that on your bat?

Blue group hint: Catch the football.

Purple group hint: Lake Placid or Lillehammer.

Answers for today’s Connections: Sports Edition groups

Yellow group: Baseball bat materials.

Green group: Associated with George Brett.

Blue group: NFL rookie WRs.

Purple group: Olympic ____.

Read more: Wordle Cheat Sheet: Here Are the Most Popular Letters Used in English Words

What are today’s Connections: Sports Edition answers?

The yellow words in today’s Connections

The theme is baseball bat materials. The four answers are aluminum, ash, birch and maple.

The green words in today’s Connections

The theme is associated with George Brett. The four answers are 5, pine tar, Royals and third base.

The blue words in today’s Connections

The theme is NFL rookie WRs. The four answers are Burden, Egbuka, Golden and McMillan.

The purple words in today’s Connections

The theme is Olympic ____. The four answers are Games, rings, torch and village.


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Technologies

Christmas Eve Gaming Crushed as Steam Goes Offline

Services related to the popular game hub seem to slowly be returning as of Wednesday afternoon.

Your Christmas Eve gaming session might not go as planned. Online gaming hub Steam went down on Wednesday. As of about 1:30 pm PT, the Steam store page was once again accessible, so services seemed to be coming back online.

The Steam outage appeared to begin mid-afternoon ET, according to Downdetector, which monitors site outages. (Disclosure: Downdetector is owned by the same parent company as CNET, Ziff Davis.)

A representative for Steam did not immediately respond to a request for comment. 

As of Wednesday noon PT, Steam’s official X and Bluesky accounts hadn’t posted anything about the outage.

Gamers certainly noticed. «Steam down, Steam down!!!» wrote one Bluesky user. 

Others commented on the bad timing just as gamers were enjoying time off or receiving gaming gifts. «‘You got a gift on Steam!’ oh cool ‘Steam is down’ oh cool,» wrote another Bluesky user.

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