Texas Attorney General Probes Meta AI Studio and Character.AI Over Child Data and Health Claims

Texas Attorney General Ken Paxton has opened an investigation into Meta AI Studio and Character.AI over concerns that their AI chatbots may present themselves as health or therapeutic tools while potentially misusing data collected from underage users. Paxton argued that some chatbots on these platforms misrepresent their expertise by suggesting they are licensed professionals, which could leave minors vulnerable to misleading or harmful information. 

The issue extends beyond false claims of qualifications. AI models often learn from user prompts, raising concerns that children’s data may be stored and used for training purposes without adequate safeguards. Texas law places particular restrictions on the collection and use of minors’ data under the SCOPE Act, which requires companies to limit how information from children is processed and to provide parents with greater control over privacy settings. 

As part of the inquiry, Paxton issued Civil Investigative Demands (CIDs) to Meta and Character.AI to determine whether either company is in violation of consumer protection laws in the state. While neither company explicitly promotes its AI tools as substitutes for licensed mental health services, there are multiple examples of “Therapist” or “Psychologist” chatbots available on Character.AI. Reports have also shown that some of these bots claim to hold professional licenses, despite being fictional. 

In response to the investigation, Ch

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