FTC Requests Safety Records from OpenAI and Anthropic
The Federal Trade Commission (FTC) has issued extensive 50-page demands to OpenAI and Anthropic regarding their security incidents, safety safeguards, marketing practices, and privacy policies. This regulatory move coincides with updates to Meta's business terms allowing web scraping, and reports that Character.ai has filed for Chapter 11 bankruptcy protection. These developments highlight escalating government scrutiny and financial pressures within the artificial intelligence sector as major players navigate regulatory compliance, legal challenges, and shifting business models. As companies adopt enterprise AI at scale, regulatory bodies are stepping up oversight to ensure data privacy and safety standards are maintained. Additional highlights from the industry roundup include Meta updating its terms effective October 30 to scrape publisher websites for AI training, Accenture subsidizing Claude subscriptions for its employees, and Bank of America hiring contractors to fix vulnerabilities flagged by AI models.
## BACKGROUND
The FTC exercises regulatory authority to protect consumers and maintain competition by investigating deceptive or unfair business practices in emerging technology markets. Meanwhile, Chapter 11 bankruptcy allows a company to restructure its debts and operations under court supervision while seeking a sale or turnaround strategy.