2026 has become a turning point year for AI toys. Between a first-in-the-nation state moratorium bill, a federal proposal to ban AI chatbots in children's toys outright, and a widely cited safety study, parents shopping for an interactive plush this year have a lot more to weigh than "does it talk back?" Here's what's actually happening, what the research found, and what to check before you buy.
What's happening with AI toy safety laws in 2026?
Lawmakers on both coasts moved on AI toys this year. California's Senate Bill 867, authored by Senator Steve Padilla, passed the state Senate 39-0 and proposes a four-year moratorium on manufacturing or selling toys with generative AI "companion chatbots" for children 12 and under, running through January 2031. At the federal level, Congressman Blake Moore introduced the AI Children's Toy Safety Act, which would go further and ban AI chatbots in children's toys nationwide.
Why are lawmakers concerned specifically now?
Both bills followed a difficult 2025 that included high-profile reports of AI companions giving minors harmful advice and instances of AI toys generating sexually explicit content. Regulators say the goal isn't to ban helpful technology outright, but to buy time for real safety standards — things like content filtering, data limits, and age-appropriate design — to catch up with how fast these products reached shelves.
Why did researchers call some AI toys an "unacceptable risk"?
In early 2026, Common Sense Media's Youth AI Safety Institute tested three popular AI companion toys marketed as screen-free, educational alternatives — Grem, Bondu, and Miko 3 — using test accounts set for children ages 6 to 13. The findings were sobering: 27% of the toys' responses were found to be age-inappropriate, and researchers noted the products could encourage unhealthy emotional attachment while collecting extensive voice recordings and behavioral data.
The report's recommendation was direct: no AI companion toy for children age 5 and under, and "extreme caution" for parents considering one for kids 6 to 12. That guidance is now shaping how legislators, retailers, and parents evaluate every AI toy on the market — including ours.
Is Ted different from the toys named in these reports?
We built Ted around the exact concerns these reports raise. Ted has no camera — just a microphone and speaker — so there's no video or image data to collect in the first place. Setup happens entirely through the Ted&Co parental app, where parents choose Push-to-Talk or automatic listening, set the language, and manage parental controls before a child ever presses play. There's no subscription: the price is one-time and all-inclusive, which removes the business incentive to maximize engagement time that critics point to in some AI companion products.
Ted is also certified against a long list of independent standards, including CE, RED, EN71, GDPR, and COPPA — the two regulations most directly focused on children's data privacy. None of this makes any AI toy risk-free, which is exactly why we think the new wave of scrutiny is healthy for the category. But it does mean the specific risks researchers flagged — hidden cameras, unclear data practices, no parental oversight — are things we designed against from day one.
What should parents look for before buying an AI toy in 2026?
Given where the research and regulation currently stand, a few checks go a long way:
- No camera. A microphone-only design limits what data can possibly be collected.
- A real parental control app. You should be able to set up Wi-Fi, choose a listening mode, and manage settings before your child uses the toy.
- Clear, published data practices. Look for explicit GDPR or COPPA compliance, not just a general privacy policy.
- No subscription pressure. Recurring fees can create incentives to maximize engagement rather than healthy play.
- Independent certifications. Marks like CE, FCC, and toy safety standards (EN71, ASTM F963, CPSIA) signal third-party testing beyond the manufacturer's own claims.
- Age-appropriate expectations. Following Common Sense Media's guidance, treat any AI companion toy with caution for children under 6, and stay involved in how older kids use one.
For more detail on how Ted handles setup, data, and parental controls, our FAQ page covers the most common questions parents ask before buying.
Frequently asked questions
Are AI toys banned?
Not yet, nationwide. California's SB 867 would pause sales of AI companion chatbot toys for children 12 and under if it becomes law, and a federal bill has been proposed, but as of publication no nationwide ban is in effect. Regulations vary by state and are actively evolving, so it's worth checking current status before assuming any product is or isn't affected.
What age is appropriate for an AI companion toy?
Child safety researchers at Common Sense Media recommend against AI companion toys for children 5 and under, and advise extreme caution for children ages 6 to 12. Ted is designed for children age 3 and up, with parental controls that let caregivers decide how much independence to give based on their own child's maturity.
Does Ted have a camera or record video?
No. Ted uses a microphone and speaker only — there is no camera and no video capability.
Does Ted require a subscription?
No. Ted is a one-time purchase with no recurring subscription fees required to use its core features.
How do I control what Ted listens to and when?
Everything is managed through the Ted&Co parental app, where you set up Wi-Fi, choose between Push-to-Talk or automatic listening, and adjust parental controls at any time.