/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130344212z-iw-new.png)
/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130332454z-iw-new.jpg)
/industry-wired/media/post_attachments/wp-content/uploads/2024/11/FTCs-Melissa-Holyoak-Calls-for-Investigation-into-AIs-Collection-of-Childrens-Data.jpg "publive-image")
AI's use of children's data sparks concerns from FTC commissioner Holyoak, calls for deep review
US Federal Trade Commissioner, Melissa Holyoak expressed her concerns on November 14 on how artificial intelligence products collect and use data for children. Speaking before an American Bar Association antitrust meeting in Washington, Holyoak said the Federal Trade Commission should scrutinize the data practices of AI when it targets more junior users.
Holyoak highlighted the risks entailed with the AI services that children use. She compared these interactions to how older generations once engaged with the Magic 8 Ball, saying kids might ask questions like, "Should I go to the dance?" She then made pointed questions: “Who is collecting that? Who has that information? Where is that information going?”
The FTC enforces the Children's Online Privacy Protection Act or COPPA, which states the rules governing how platforms obtain data about children. Before this, the agency has been critical of applications like TikTok on charges of COPPA violation. The FTC should examine its power to gather details about AI privacy practices that include children as advocated by Holyoak.
Her comments are coming as the FTC prepares for a leadership transition. Chair Lina Khan is likely to leave or be forced out, possibly by January, when President-elect Donald Trump assumes office. Holyoak is one of two Republicans on the commission and could serve as acting chair.
Khan has attracted attention because of her fierce opposition to corporate consolidation. Democrats have even commended some of her including Republicans, like Vice President-elect JD Vance, who have also praised her strength in approach. Holyoak advocated more practicality in mergers and acquisitions. “We're not in the business of trying to stop deals to just stop deals,” she said.
She also spoke about the FTC defending a prohibition on worker noncompete clauses, which she predicted the agency would lose on appeal. "I think we all could benefit from the court and the Supreme Court weighing in on this issue," she added.
In Holyoak's comments, there is a reflection of an emerging focus on AI, privacy, and what regulatory priorities will look like under the shifting leadership at the FTC.