Texas Attorney General Takes Action Against Meta and Character.AI for Misleading Mental Health Claims Targeting Kids

Texas Attorney General Ken Paxton has initiated an investigation into Meta and Character.AI, aiming to determine if they are engaging in deceptive trade practices by marketing their AI technology as mental health tools. This inquiry highlights concerns over child safety, data privacy, and targeted advertising practices related to AI chatbots.
Paxton’s press release emphasized the need to protect vulnerable children from potentially misleading AI platforms that pose as emotional support resources. He argued that these chatbots might lead children to believe they are receiving genuine mental health care, while they often deliver generic responses crafted based on collected personal data.
The investigation follows reports about inappropriate interactions between Meta’s AI chatbots and children, further spotlighting the risks posed by these AI tools. The Texas Attorney General’s office has accused both companies of producing AI personas that masquerade as professional therapeutic resources without the necessary medical credentials or oversight.
Among the AI personas available on Character.AI, the user-generated bot called "Psychologist" has gained popularity among younger users. Meanwhile, while Meta does not specifically offer therapy bots aimed at children, there is no barrier preventing minors from accessing its AI chatbots or the third-party personas designed for therapeutic purposes.
Meta has defended its approach by stating that its AI models are clearly labeled and include disclaimers to inform users that the responses are generated by artificial intelligence, not by licensed professionals. However, experts have raised concerns that many children may overlook these disclaimers or not understand their significance.
Character.AI similarly includes disclaimers advising users that their chatbots are not real people and should not be relied upon for professional advice. Despite these disclaimers, attorney Paxton pointed out that both companies log user interactions, which may be exploited for advertising purposes, thus raising privacy issues.
Both Meta’s and Character.AI’s privacy policies reveal significant data collection practices, including tracking user behavior across various platforms for service optimization and targeted advertisements. Although both companies claim their services are not intended for anyone under 13 years old, the reality is that children may still access them.
The investigation and the broader implications of AI technology in relation to child safety underscore the ongoing discussions around legislation such as the Kids Online Safety Act (KOSA). Despite prior momentum, the bill faced strong opposition from tech lobbyists and has re-entered the Senate for consideration once again.
Paxton’s office has issued civil investigative demands to Meta and Character.AI, requiring them to provide documents and details concerning their practices to assess compliance with Texas consumer protection laws.
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