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.

The 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 chatbot 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

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.

The Commission said that Snapchat's My AI feature presented 'risks and harms to young users of the application,' while Snap says that the complaint 'is based on inaccuracies, and lacks concrete evidence.