In a rare move, the FTC issued a statement that revealed it referred a complaint against Snap to the DOJ, alleging an AI-powered chatbot is harmful to users.

U.S. Federal Trade Commission said on Thursday it has referred to the Justice Department a complaint against Snap, Inc., that alleges its messaging app Snapchat used an artificial intelligence chatbox that harmed young users.

Snap, the owners of social media app Snapchat, has been referred to the Department of Justice because of allegedly causing "risks and harms" to young users

The Federal Trade Commission has referred a complaint against Snap Inc. (NYSE:SNAP) to the Department of Justice, according to a public statement made by the U.S. government agency Thursday. The complaint against the Snapchat parent is connected to the deployment of "My AI" chatbot on the company's platform,

Snap shares closed down 5% on Thursday after the Federal Trade Commission said it would refer a complaint against the company to the Department of Justice.