August 20, 2025 | 10:27 am

TEMPO.CO, Jakarta - The Attorney General of the State of Texas, Ken Paxton, is launching an investigation into Meta-owned AI chatbot and Character.AI. These two entities are believed to be engaging in deceptive trade practices by "misleadingly" marketing themselves as mental health tools.
“In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” Paxton said through the official website of the Texas Attorney General on Monday, August 18, 2025.
According to the Attorney General, the platforms can be utilized by vulnerable users, including children, and can present themselves as professional therapists, although they lack proper credentials or medical supervision.
AI chatbots often offer more than general advice, and have been proven to impersonate licensed mental health professionals, fabricate qualifications, and claim to provide reliable counseling services. While AI chatbots affirm confidentiality, the term of service reveal that user interactions will be recorded, tracked, and exploited for advertising and algorithmic development.
As a result, Ken Paxton has issued Civil Investigative Demands (CIDs) to Meta and Character.AI. "By posing as sources of emotional support, AI platforms can mislead vulnerable users, especially children, into believing they’re receiving legitimate mental health care," Paxton said.
This investigation also seeks to hold the relevant companies accountable for protecting the data of the Texas public. Additionally, the Attorney General is investigating potential violations of the SCOPE Act and will ensure that all AI-based tools are legitimate, transparent, and do not take advantage of the public.
Citing Techcrunch, a spokesperson for Character.AI stated that the company is just beginning to explore targeted advertising on the platform. The privacy policy also applies equally to all users who tailor their personal preferences.
"Those explorations have not involved using the content of chats on the platform," as quoted from the report released on Monday, August 18, 2025. However, Meta has not yet responded to this investigation.
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