United States of America: Attorney General opened investigation into Meta and Character.AI over deceptive marketing of mental health services

On 18 August 2025, the Texas Attorney General opened an investigation into Meta Artificial Intelligence (AI) Studio and Character.AI for allegedly deceiving children by presenting AI chatbots as licensed mental health providers. The investigation focuses on whether the platforms fabricated qualifications, falsely promised confidentiality while logging user data, and misled users about offering private therapeutic counselling. It was highlighted that Civil Investigative Demands were issued to the companies to determine if these practices breach Texas consumer protection laws, including those prohibiting fraudulent claims, privacy misrepresentations, and the concealment of material data usage.