Federal Trade Commissioner Discusses AI Data Use and Child Privacy

By Jody Godoy

WASHINGTON (Reuters) – U.S. Federal Trade Commissioner Melissa Holyoak emphasized the need to investigate how artificial intelligence products utilize data from younger users due to rising privacy and safety concerns.

Holyoak, one of two Republicans on the commission who might serve as acting chair following the inauguration of President-elect Donald Trump in January, highlighted the necessity for the agency to explore its authority regarding AI privacy practices impacting children.

Drawing a parallel to older generations consulting a Magic 8 Ball for guidance, she remarked on children using AI services by asking, "should I go to the dance?" She questioned, "Who is collecting that? Who has that information? Where is that information going?" during her speech at an American Bar Association antitrust meeting in Washington.

The FTC enforces the Children’s Online Privacy Protection Act, governing how platforms manage data from younger users, and has previously sued TikTok for alleged breaches.

With current chair Lina Khan set to depart or be replaced by a Trump appointee, the agency anticipates significant changes. Khan's initiatives against corporate consolidation have garnered support from both Democrats and some Republicans, including Vice President-elect JD Vance, while also facing criticism from segments within the business sector for her confrontational methods.

Khan maintains that increased scrutiny of deals serves to prevent mergers that may unlawfully hinder competition.

Holyoak argued against a dogmatic stance regarding mergers and acquisitions, stating, "We are not in the business of trying to stop deals just to stop deals." She also expressed skepticism about the FTC's ability to defend the worker noncompete ban, without commenting on the support expressed by former U.S. Representative Matt Gaetz, Trump’s selection for attorney general.

“I think we all could benefit from the court and the Supreme Court weighing in on this issue,” she concluded.