The U.K.'s Information Commissioner's Office (ICO) has handed a preliminary enforcement notice to Snap Inc (NYSE: SNAP), the company behind Snapchat, due to concerns regarding privacy risks associated with its My AI chatbot.
The ICO's investigation has provisionally found that Snap may not have sufficiently identified and assessed privacy risks to children and other users before launching the chatbot.
If the final notice is issued, it could halt data processing linked to My AI, Bloomberg reports.
Information Commissioner John Edwards expressed concerns about Snap's alleged oversight. Snap, however, defended its privacy protocols, stating that My AI underwent a comprehensive legal and privacy review before its public release.
The chatbot, introduced to premium U.K. subscribers in February and all British users in April, utilizes OpenAI Inc.'s ChatGPT technology.
It has served as a virtual friend within Snapchat and contributed to diversifying Snap's revenue via paid subscriptions.
Snap is reviewing the ICO's decision and remains committed to user privacy.
Price Action: SNAP shares traded lower by 1.54% at $8.61 on the last check Friday.