Texas lawyer common Ken Paxton has launched an investigation into each Meta AI Studio and Character.AI for “probably partaking in misleading commerce practices and misleadingly advertising themselves as psychological well being instruments,” in line with a press launch issued Monday.
“In right this moment’s digital age, we should proceed to battle to guard Texas youngsters from misleading and exploitative expertise,” Paxton is quoted as saying. “By posing as sources of emotional help, AI platforms can mislead weak customers, particularly youngsters, into believing they’re receiving authentic psychological well being care. In actuality, they’re usually being fed recycled, generic responses engineered to align with harvested private information and disguised as therapeutic recommendation.”
The probe comes just a few days after Senator Josh Hawley introduced an investigation into Meta following a report that discovered its AI chatbots had been interacting inappropriately with youngsters, together with by flirting.
The Texas Legal professional Common’s workplace has accused Meta and Character.AI of making AI personas that current as “skilled therapeutic instruments, regardless of missing correct medical credentials or oversight.”
Among the many hundreds of thousands of AI personas out there on Character.AI, one user-created bot referred to as Psychologist has seen excessive demand among the many startup’s younger customers. In the meantime, Meta doesn’t provide remedy bots for youths, however there’s nothing stopping youngsters from utilizing the Meta AI chatbot or one of many personas created by third events for therapeutic functions.
“We clearly label AIs, and to assist individuals higher perceive their limitations, we embody a disclaimer that responses are generated by AI — not individuals,” Meta spokesperson Ryan Daniels advised TechCrunch. “These AIs aren’t licensed professionals and our fashions are designed to direct customers to hunt certified medical or security professionals when acceptable.”
Nevertheless, TechCrunch famous that many youngsters might not perceive — or might merely ignore — such disclaimers. We now have requested Meta what further safeguards it takes to guard minors utilizing its chatbots.
Techcrunch occasion
San Francisco
|
October 27-29, 2025
In his assertion, Paxton additionally noticed that although AI chatbots assert confidentiality, their “phrases of service reveal that person interactions are logged, tracked, and exploited for focused promoting and algorithmic improvement, elevating critical issues about privateness violations, information abuse, and false promoting.”
In keeping with Meta’s privateness coverage, Meta does accumulate prompts, suggestions, and different interactions with AI chatbots and throughout Meta companies to “enhance AIs and associated expertise.” The coverage doesn’t explicitly say something about promoting, however it does state that data might be shared with third events, like engines like google, for “extra customized outputs.” Given Meta’s ad-based enterprise mannequin, this successfully interprets to focused promoting.
Character.AI’s privateness coverage additionally highlights how the startup logs identifiers, demographics, location data, and extra details about the person, together with shopping habits and app utilization platforms. It tracks customers throughout advertisements on TikTok, YouTube, Reddit, Fb, Instagram, and Discord, which it could hyperlink to a person’s account. This data is used to coach AI, tailor the service to non-public preferences, and supply focused promoting, together with sharing information with advertisers and analytics suppliers.
TechCrunch has requested Meta and Character.AI if such monitoring is finished on youngsters, too, and can replace this story if we hear again.
Each Meta and Character say their companies aren’t designed for kids beneath 13. That mentioned, Meta has come beneath fireplace for failing to police accounts created by youngsters beneath 13, and Character’s kid-friendly characters are clearly designed to draw youthful customers. The startup’s CEO, Karandeep Anand, has even mentioned that his six-year-old daughter makes use of the platform’s chatbots.
That sort of knowledge assortment, focused promoting, and algorithmic exploitation is strictly what laws like KOSA (Children On-line Security Act) is supposed to guard towards. KOSA was teed as much as move final yr with sturdy bipartisan help, however it stalled after main pushback from tech trade lobbyists. Meta particularly deployed a formidable lobbying machine, warning lawmakers that the invoice’s broad mandates would undercut its enterprise mannequin.
KOSA was reintroduced to the Senate in Might 2025 by Senators Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT).
Paxton has issued civil investigative calls for — authorized orders that require an organization to provide paperwork, information, or testimony throughout a authorities probe — to the businesses to find out if they’ve violated Texas client safety legal guidelines.
