Texas Attorney General Ken Paxton has launched investigations into Character.AI and fourteen other companies, including Reddit, Instagram, and Discord, for potential violations of the SCOPE Act and TDPSA regarding children's privacy and safety. The investigations focus on unauthorized sharing of minors' data and lack of parental controls. No penalties have been imposed yet as the investigations are ongoing.
In-house legal teams should review all vendor and customer agreements, particularly those involving services accessible to minors or handling user-generated content. Focus on clauses governing data sharing, consent mechanisms, age verification, data retention, and breach notification. Specific attention is needed for any provisions allowing the collection or sharing of data from individuals under 18. Contracts may require amendments to include explicit parental consent requirements, robust age-gating, restrictions on minor data profiling, and enhanced data security protocols for child-related information. Data processing addendums with third parties should also be audited to ensure compliance with child data protection standards.
Entity
Character.AI
Industry
Technology$1.0B
Texas Attorney General Ken Paxton secured a historic settlement with Meta Platforms, Inc. requiring Meta to pay over $1 billion and implement significant new safeguards to protect children online. The settlement includes stricter age-assurance measures, a daily two-hour limit for teen users, default disabling of notifications during school hours, hidden likes/reactions, and a nighttime access mode restricting features for children.
Texas Attorney General Ken Paxton launched an industry-wide investigation into companies marketing avocado oil products that may contain undisclosed seed oils. Civil Investigative Demands were issued to Primal Kitchen, Siete Foods, and Chosen Foods, with more companies expected to be investigated for potential violations of the Texas Deceptive Trade Practices Act.
Attorney General Ken Paxton secured settlements with WK Kellogg Co. and General Mills Inc. requiring the removal of synthetic dyes from cereals served in schools. The companies have already removed these dyes from K-12 cereals, with full removal from all products by the end of 2027.
Texas Attorney General Ken Paxton launched an investigation into the American Academy of Pediatrics (AAP) over concerns that the organization may be promoting and recommending childhood vaccines for financial gain. The AAP has been issued a Civil Investigative Demand to determine the basis of its vaccine recommendations and whether they are influenced by financial incentives from pharmaceutical donors.
Texas Attorney General Ken Paxton announced an investigation into major food manufacturers, including Frito Lay, Flora Food Group, and ACH Foods, over misleading 'heart healthy' labeling. The investigation will examine whether their advertising practices violate the Texas Deceptive Trade Practices Act by misrepresenting the health value of their products. Civil Investigative Demands have been issued to these companies.
Texas Attorney General Ken Paxton opened an investigation into Lone Star Pups, LLC for misleading consumers about the origin and veterinary care of puppies sold online. The company allegedly misrepresents breeder certifications and a '10 Year Health Guarantee' with restrictive fine print. The investigation focuses on potential violations of the Texas Deceptive Trade Practices Act.