Texas AG Probes Meta and Character.AI for Deceptive AI Mental Health Claims

Texas Attorney General Ken Paxton has launched a sweeping investigation into Meta AI Studio and Character.AI, alleging deceptive trade practices centered on the platforms’ marketing of AI chatbots as mental health tools. The inquiry highlights concerns that these AI systems, which lack medical credentials, are misleading users—particularly children—into believing they offer legitimate therapeutic support. Paxton emphasized that such interactions could expose vulnerable individuals to generic, algorithmically generated responses masquerading as professional care [1].

The probe follows reports of inappropriate AI interactions, including instances where Meta’s chatbots engaged in flirting with minors. While Meta asserts that its AI chatbots are not intended for children and includes disclaimers clarifying their non-human nature, critics argue these safeguards are insufficient. Young users, lacking the critical thinking skills to interpret disclaimers, may be especially vulnerable to mistaking AI interactions for genuine emotional support [2].

Character.AI faces similar scrutiny for hosting user-created AI personas that mimic professional therapeutic roles, including a popular "Psychologist" bot. The platform’s age policy explicitly excludes users under 13, yet its CEO has acknowledged that minors, including his own daughter, use the service. This contradiction raises questions about the effectiveness of age verification measures and the extent to which companies enforce their own policies [3].

Both investigations underscore broader challenges in regulating AI chatbots. As these systems become more integrated into daily life, the lack of oversight in areas like mental health care and data privacy remains a pressing issue. The Texas AG’s action aligns with a growing push for legislation such as the Kids Online Safety Act (KOSA), which seeks to impose a "duty of care" on online platforms to protect minors from harmful content and exploitative practices [4].

The legal probe also touches on data privacy concerns, with both Meta and Character.AI collecting extensive user data—including interactions, demographics, and browsing behavior—for AI training and targeted advertising. This practice raises ethical questions, particularly when it involves the sensitive information of young users who may not fully understand the implications of their online activity [5].

The outcome of the Texas AG’s investigation could set important precedents for how AI is regulated and developed. It may compel tech companies to adopt more transparent data practices, enhance content moderation, and implement stronger age verification systems. As AI continues to evolve, the balance between innovation and ethical responsibility becomes ever more critical. The case also highlights the urgent need for comprehensive legal frameworks that reflect the realities of AI’s expanding role in sensitive domains [6].

Source: [1][2][3][4][5][6]

[1] Title: AI Chatbot Regulation: Texas AG Launches Alarming Probe into Meta, Character.AI (https://coinmarketcap.com/community/articles/68a36d99bdc32e67c8ca9175/)