FTC Launches Inquiry into AI Chatbots and Consumer Risks

Author

Taylor Hawes
September 12, 2025

⚡ Weekend Threat Brief

US cybersecurity protections at risk as key law nears expiration

US companies face gaps in cyber protections as a key law nears expiry. The article explains which rules could lapse, what employers and service providers may lose if Congress does not act, and which types of incidents are most likely to rise as legal safeguards wane. Short takeaways: companies should review contracts, check incident reporting obligations, and refresh basic controls while lawmakers decide next steps.

🎯 Tactical Playbook

How to use the CLOUD Act to protect encryption and lawful access

Use existing legal tools to protect encryption and data access. The piece argues that the CLOUD Act can be applied to preserve lawful access while protecting encryption in some cases. It gives steps legal teams and security leaders can take now: map where encrypted data and keys live, document lawful-access needs, and coordinate with vendors on cross-border data requests. The write-up frames the CLOUD Act as a practical lever for balancing access and protection. 

🛡️ Research Watch

FTC launches inquiry into AI chatbots and consumer risks

The US Federal Trade Commission opened an inquiry into AI chatbots. The inquiry looks at consumer harms, data handling, and how models are trained and marketed. Organisations using or offering chatbot services should check data provenance, consent records, and vendor promises about safety and testing. Expect more regulatory interest in AI products that touch consumer.

🧩 Tool Tip of the Week

ManageEngine ADAudit Plus 

This system helps clean up and protect account data in Active Directory – a necessary step for the tool’s main aim, which is user activity tracking. Use this system to identify insider threats and account takeovers. Available for Windows Server, AWS, and Azure. 

🗣️ Community Signal

But third-party risk isn’t just a box-ticking exercise. It’s an ongoing, dynamic threat surface that most businesses are failing to monitor. Why? Because we trust too easily. Or we don’t have the resource to validate and challenge what vendors claim. Your weakest link is outside your business..” Bryan Altimas

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Until next edition!