Brand Marketing
FMCG firms cut senior roles by 32%; Total headcount shrinks 9.26% in FY25
US probes Meta and Character.AI over child safety, mental health claims
Texas attorney general says AI chatbots may be misleading children as therapy tools; investigation adds to global scrutiny of AI platforms.
The office accused Meta and Character.AI of creating AI personas that present themselves as professional therapeutic tools without proper medical credentials or oversight.
Texas (U.S) Attorney General Ken Paxton reportedly has launched an investigation into Meta AI Studio and Character.AI, alleging that the companies may be misleadingly marketing themselves as mental health tools and engaging in “deceptive trade practices.”
“In today’s digital age, we must continue to fight to protect Texas kids from deceptive and exploitative technology,” Paxton said in a statement on August 18.
“By posing as sources of emotional support, AI platforms can mislead vulnerable users, especially children, into believing they’re receiving legitimate mental health care. In reality, they’re often being fed recycled, generic responses engineered to align with harvested personal data and disguised as therapeutic advice.”
The probe comes days after Senator Josh Hawley announced an investigation into Meta, following reports that its AI chatbots had inappropriate interactions with children, including instances of flirting.
Paxton’s office, as per media reports, accused Meta and Character.AI of creating AI personas that present themselves as professional therapeutic tools without proper medical credentials or oversight.
Paxton also raised alarms about privacy, alleging that the platforms’ terms of service reveal extensive logging, tracking, and exploitation of user interactions for targeted advertising and algorithmic development.
Meta’s privacy policy acknowledges collecting prompts and feedback across services to “improve AIs and related technology,” with some information shared with third parties for “personalized outputs.” Character.AI’s policy highlights collection of demographics, location, browsing behavior, and app usage, which may be linked to ads across TikTok, YouTube, Instagram, and other platforms.
SPOTLIGHT
Big-ticket buying decisions now demand more than just logic and product specs – they require trust, emotional connection, and brand stories that resonate.
Read MoreThe Hershey Company appoints Natalie Rothman as CHRO
Natalie Rothman will lead Hershey's global human resources function and report to president and chief executive officer Kirk Tanner.