Texas Attorney General Ken Paxton has launched an investigation into AI chatbot platforms Meta AI Studio and Character.AI over allegations that they deceptively market themselves as mental health services, potentially endangering vulnerable users—particularly children.
Announced Monday, the probe centers on whether the companies violated Texas consumer protection laws by presenting their AI chatbots as legitimate therapeutic tools without appropriate medical credentials, licensing, or oversight. Paxton’s office says some platforms impersonate licensed therapists, fabricate qualifications, and offer emotional support under the guise of privacy—despite secretly logging and exploiting user data for advertising and algorithm development.
“In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” Paxton said in the press release. “By posing as sources of emotional support, AI platforms can mislead vulnerable users, especially children, into believing they’re receiving legitimate mental health care.”
Civil Investigative Demands (CIDs) have been issued to both companies. Paxton’s office is seeking documentation related to claims made about the platforms’ capabilities, data collection practices, and whether users were misled about the nature and privacy of interactions with AI bots.
The move follows a prior investigation into Character.AI for potential violations of the SCOPE Act and expands Paxton’s growing scrutiny of generative AI companies operating in Texas. The latest action underscores mounting legal and ethical concerns over AI-powered platforms offering seemingly therapeutic services without professional oversight.
Character.AI and Meta have not publicly responded to the investigation. If violations are found, the companies could face civil penalties and be forced to change their business practices to comply with Texas law. Paxton’s office said the investigation is part of broader efforts to ensure AI tools are lawful, transparent, and not weaponized against Texas families.
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