Should Meta target ads based on convos with their AI chatbots?

by | Nov 4, 2025 | E-commerce News

Privacy watchdogs sent a letter to FTC Chair Andrew Ferguson, urging the FTC to stop Meta from moving forward with its plan to target ads to Facebook, Instagram, Threads, and WhatsApp users based on their conversations with chatbots. 

Meta first revealed its plans to do so in early October, set to begin targeting users by Dec 16th. The company said at the time it will target ads and content to users if, for example, they talk to their chatbot about hiking, traveling, or shopping, but will avoid using personal or difficult conversations you have with its AI, such as about a relationship or depression, to serve ad content.

The Electronic Privacy Information Center, Center for Digital Democracy, and other groups argue that Meta's plans cross a line: 

“This unprecedented use of deeply sensitive data presents outsized risks to consumer data privacy and security. Meta’s plan to repurpose conversational AI data for advertising illustrates the dangers of regulatory inaction: absent intervention, the practice will normalize a level of surveillance that is qualitatively more intrusive than traditional behavioral tracking.”

The organizations also claim that Meta's plan is “at odds with” an FTC settlement from 2020 that requires the company to conduct detailed reviews and privacy assessments for each new service that collects or uses consumer data, and then subsequently implement privacy safeguards in response to any risks discovered. (Gotta love those self audit requirements!)

The advocacy groups argue that AI conversational data is a level above other user data:

“At a minimum, this category of data should be treated as sensitive information requiring affirmative, opt-in consent from adults (and a categorical prohibition on monetization of youth data) before it can be used for advertising. Failing to impose this standard would effectively permit firms to unilaterally exploit the most private forms of digital interaction for commercial gain.”

The outcome of the efforts by these privacy watchdogs (if any) could have a substantial impact on if / how other AI companies are permitted to use AI chatbot conversations to target ads, as well as how they handle the usage of that data.

Meta is the first company to try and target users based on their conversations with chatbots on a massive scale, but it won't be the lastespecially with OpenAI and other AI firms integrating commerce into their chatbots. Ads are about to become part of the AI experience in a big way!

Should Meta be allowed to use your chatbot convos to target you with ads? Join the conversation on LinkedIn

Paul Drecksler is the founder and editor of Shopifreaks E-commerce Newsletter, covering the most important stories in e-commerce.

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