San Antonio

Texas Attorney General Ken Paxton Investigates Meta and Character.AI for Allegedly Misleading Children with AI Chatbots

AI Assisted Icon
Published on August 19, 2025
Texas Attorney General Ken Paxton Investigates Meta and Character.AI for Allegedly Misleading Children with AI ChatbotsSource: Unsplash/ Mohamed Nohassi

Texas's top legal official is setting his sights on some big tech names over concerns that they may be stepping over the line when dealing with the mental health of children. Attorney General Ken Paxton is probing into Meta's AI Studio and Character.AI, scrutinizing their AI chatbot platforms for potentially misleading practices that contravene consumer protection laws. According to Paxton's statement, these high-tech tools are under suspicion of deceptively marketing themselves as mental health resources despite lacking medical credentials.

Paxton’s office said the investigation is focusing on the use of the platforms by children, who may be more susceptible to believing they are interacting with legitimate professional help. According to the Texas Attorney General, attorney general, the concerns include whether the services impersonate licensed mental health providers, make false claims about credentials, or offer counseling that is not private or secure. “In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” Paxton said in a statement, warning that AI tools marketed as emotionally supportive may pose risks.

The Texas Attorney General said the issue is not about the distinction between assistive technology and professional care, but about alleged deception. According to Paxton, while users may believe AI chatbot conversations are confidential, the platforms’ terms of service indicate that interactions are monitored and can be used for targeted advertising and AI development. Officials say this practice raises concerns over privacy and data use.

Paxton has served up Civil Investigative Demands (CIDs) to knuckle down on whether these companies have been playing fast and loose with the law. Any deceptive claims, privacy missteps, and murky data practices could be enough to see them run afoul of consumer protection laws. Building on previous work, including an investigation into Character.AI for possible violations of the SCOPE Act, Paxton's actions endeavor to ensure AI tools operate legally and transparently and that they do not exploit the trust of Texans.