Texas AG Alleges Meta, Character.AI Misrepresented AI Chatbots as Mental Health Tools

Aug 19, 2025
TechCrunch
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Summary

Texas Attorney General alleges Meta and Character.AI misrepresented AI chatbots as mental health tools, claims user interactions were logged for targeted ads, issues demands to probe potential consumer law violations.

Key Points

  • Texas attorney general accuses Meta and Character.AI of misleadingly marketing AI chatbots as mental health tools
  • Attorney general claims the companies' terms of service reveal user interactions are logged and exploited for targeted advertising
  • Texas issues civil investigative demands to determine if Meta and Character.AI violated consumer protection laws

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