Texas Attorney General Ken Paxton announced on Monday that his office has launched an investigation into Meta Platforms Inc. and Character.AI, probing whether their AI-chatbot services have misled children into believing they were receiving legitimate mental health support. The charge has raised concerns under Texas consumer protection laws over false therapeutic representations, privacy, and data misuse.
In a press release, Paxton highlighted troubling practices: these chatbots—often presented with therapeutic personas like “psychologist” or “therapist”—may have falsely implied professional credentials, while delivering generic, algorithm-generated responses without medical oversight. He warned that such AI tools could mislead vulnerable users, particularly children, into mistaking them for qualified mental health providers, citing deceptive advertising and privacy violations due to data being “logged, tracked and exploited for targeted advertising and algorithmic development.”
The investigation involves the issuance of Civil Investigative Demands, seeking documentation to determine whether these companies violated Texas laws prohibiting fraudulent claims, privacy misrepresentation, and the concealment of material data usage.
Both companies have defended their practices. Character.AI emphasized that its chatbot personas are fictional and clearly labeled as entertainment, adding disclaimers that they should not be relied on for professional advice—especially when created with titles like “psychologist” or “therapist.” Likewise, Meta stated that its AI chatbots are identified as AI-generated, not licensed professionals, and are designed to encourage users to seek qualified help when needed.
This move reflects growing scrutiny of AI tools marketed toward minors, especially amidst fears of them simulating therapeutic roles without safeguards.
The investigation comes as Senator Josh Hawley has also launched a federal inquiry into Meta, following revelations that internal policies permitted AI chatbots to engage in romantic or sensual conversations with children, which Meta has since disavowed.
