Texas AG Investigates Meta and Character.AI Over Mental Health Claims

Aug 18, 2025
Texas Attorney General Ken Paxton has launched an investigation into Meta and Character.AI for allegedly misleading children with AI-generated mental health services.

Ken Paxton, the Attorney General of Texas, has initiated an investigation into Meta and Character.ai for potentially deceptive trade practices. The companies are accused of misleadingly marketing their AI platforms as mental health tools, particularly to children, announced in a press release.

The investigation aims to determine if these platforms, which lack proper medical credentials, have violated Texas consumer protection laws by presenting themselves as professional therapeutic tools. Concerns have been raised about the AI chatbots impersonating licensed mental health professionals and offering generic advice disguised as therapeutic support.

Paxton's office has issued Civil Investigative Demands to both companies to assess if they have engaged in fraudulent claims, privacy misrepresentations, and data usage concealment. The investigation underscores ongoing efforts to ensure AI tools are transparent and not exploitative, especially towards vulnerable users like children.

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