FTC’s Holyoak raises concerns about AI gathering data on children

U.S. Federal Trade Commissioner Melissa Holyoak stated on Thursday that the agency should investigate how artificial intelligence products utilize data collected from younger users, citing concerns about privacy and safety. Holyoak, one of the two Republicans on the commission who may become its acting chair once President-elect Donald Trump takes office in January, emphasized the need for the agency to assess its authority regarding AI privacy practices involving children. She illustrated her point by referencing how children interact with AI services similarly to how older generations used a Magic 8 Ball, asking questions like, “should I go to the dance?”

“Who is collecting that data? What happens to it?” Holyoak questioned during her speech at an American Bar Association antitrust meeting in Washington. The FTC enforces the Children’s Online Privacy Protection Act, which dictates how platforms can collect data from younger users, and has previously taken legal action against TikTok for alleged violations.

The FTC is anticipated to undergo changes as its current chair, Lina Khan, either steps down or is succeeded by someone appointed by Trump. Khan’s efforts against corporate consolidation in favor of consumer protection have garnered support from both Democrats and some Republicans, including Vice President-elect JD Vance, but have also faced criticism from the business sector due to her assertive tactics. Khan has argued that increased scrutiny on transactions prevents mergers that could unlawfully harm competition.

Holyoak remarked that the FTC should not adopt a rigid stance on mergers and acquisitions. “We are not in the business of trying to stop deals just for the sake of it,” she stated. Additionally, she expressed her belief that the FTC would struggle to uphold its position defending the worker noncompete ban, but she did not address support for the ban from former U.S. Representative Matt Gaetz, who has been nominated by Trump for attorney general. “I think we could all benefit from the court and the Supreme Court addressing this matter,” she remarked.