FTC Investigates AI Chatbots: What Realtors Need to Watch Out For

The Federal Trade Commission has opened an inquiry into AI chatbots, focusing on risks like misinformation and consumer harm. For Realtors, this raises serious questions about using AI bots for lead generation on your website.

If you're using an AI chatbot on your website right now, you need to pay attention. On September 11, 2025, the Federal Trade Commission (FTC) opened a 6(b) study into AI chatbots acting as companions, focused on potential risks like misinformation and harms to children and teens. This is an inquiry to gather information, not an enforcement action, but the signal is clear: regulators are paying attention.

The FTC sent orders to Alphabet, OpenAI, Meta, Snap, xAI, Character Technologies, and Instagram. They want to know how these companies are training their models, what safeguards are in place, and whether the claims about "safety" actually hold up.

Now you might be thinking: "That's a Washington problem, not mine." But here's why it matters to Realtors in the U.S. and Canada.

When you put a chatbot on your site, you may be treated as the publisher of whatever it says. If a bot tells a buyer the wrong school district, or suggests financing terms that don't exist, you could be held responsible. Same goes for Fair Housing. If the bot out a biased recommendation-even accidentally-that's your liability risk.

So what should you do? These are best-practice risk controls, not legal advice.

First, mystery shop your own bot. Go ask it tough questions about your listings, financing, or neighborhood rules. See if hallucinates. If it does, that's a red flag.

Second, add a disclaimer. A simple line right next to the chat window: "This AI assistant may be inaccurate. Verify details with a licensed Realtor." That small step could help protect you.

Third, don't set it and forget it. If you keep a bot, audit it. Regularly. It's like a team member-you wouldn't let a new assistant talk to clients unsupervised for months without checking in, right?

And here's my personal take

I don't recommend chatbots for Realtors right now. They're not tuned for Fair Housing. They hallucinate more often than you'd like to admit. And the compliance risk is real. I'd much rather see agents using AI to generate copy and campaigns they can review before publishing, instead of letting an unsupervised bot speak directly to clients.

Bottom line

The FTC's study may aimed at Silicon Valley, but it's a flashing red light for our industry too. Realtors need to get serious about AI ethics and compliance before the regulators, or worse, the courts, make those decisions for us.

If you're unsure how to balance AI efficiency with compliance in your business, that's exactly what we work on inside the Wolfpack.

FAQ (Schema-Ready)

Q: Can Realtors legally use AI chatbots on their websites?
A: Yes, but you're responsible for what the bot says. Treat chatbot outputs as your own and manage the risk accordingly.

Q: What's the FTC's biggest concern with chatbots?
A: Risks include hallucinations, misleading or biased responses, and potential harm to minors using AI companions.

Q: Should Realtors remove chatbots from their websites?
A: Not required. But if you keep one, use disclaimers and audit it often. Many agents are holding off until they're safe.

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