FTC’s Holyoak raises concerns over AI and kids’ data

Privacy risks for kids prompt FTC review.

The FTC has appointed a former Heritage Foundation researcher as its chief technology officer.

Federal Trade Commissioner Melissa Holyoak has called for closer scrutiny of how AI products handle data from younger users, raising concerns about privacy and safety. Speaking at an American Bar Association meeting in Washington, Holyoak questioned what happens to information collected from children using AI tools, comparing their interactions to asking advice from a toy like a Magic 8 Ball.

The FTC, which enforces the Children’s Online Privacy Protection Act, has previously sued platforms like TikTok over alleged violations. Holyoak suggested the agency should evaluate its authority to investigate AI privacy practices as the sector evolves. Her remarks come as the FTC faces a leadership change with President-elect Donald Trump set to appoint a successor to Lina Khan, known for her aggressive stance against corporate consolidation.

Holyoak, considered a potential acting chair, emphasised that the FTC should avoid a rigid approach to mergers and acquisitions, while also predicting challenges to the agency’s worker noncompete ban. She noted that a Supreme Court decision on the matter could provide valuable clarity.