Texas Attorney General Ken Paxton has opened an investigation into Meta AI Studio and Character.AI for deceptive practices in marketing AI chatbots as mental health services to children. The platforms are accused of impersonating licensed professionals, fabricating qualifications, and exploiting user data for advertising without proper disclosure. Civil Investigative Demands have been issued to examine violations of Texas consumer protection laws and the SCOPE Act.
In-house legal teams should review all customer-facing agreements (Terms of Service, End User License Agreements) and any vendor/data processing agreements involving AI-driven mental health or wellness services. Focus on clauses governing data collection and sharing (especially for advertising), consent mechanisms (particularly for minors), representations about service nature and provider qualifications, and compliance with the SCOPE Act. Required changes include adding clear disclaimers that AI chatbots are not licensed professionals, implementing verifiable parental consent for users under 18, disclosing any use of user data for advertising, inserting warranties against false claims of professional credentials, and incorporating specific SCOPE Act compliance measures such as parental access and control provisions.
Entity
Meta AI Studio and Character.AI
Also known as: Meta and Character.AI
Industry
TechnologyOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-investigates-meta-and-characterai-misleading-children-deceptive-ai
attorney general ken paxton launches investigations characte
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-launches-investigations-characterai-reddit-instagram-discord-and-other
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.
Texas Attorney General Ken Paxton launched an investigation into Meta's Meta AI Glasses over allegations of unlawful facial biometric data collection, deceptive privacy practices, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses' always-on recording mode lacks proper user notice, planned facial recognition features would collect data without consent, and private user videos are accessed by third-party annotators in Kenya. The AG issued a Civil Investigative Demand to Meta to determine violations of Texas privacy laws.
Texas Attorney General Ken Paxton launched an investigation into Meta regarding its Meta AI Glasses, alleging unlawful collection of facial biometric data, deceptive privacy representations, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses’ always-on recording mode lacks proper notice, subcontractors access private user content including intimate moments, and Meta plans to deploy facial recognition technology to collect unsuspecting individuals’ facial geometry. The AG issued a Civil Investigative Demand to determine if Meta violated Texas law by deceptively misrepresenting its data use practices.
Texas Attorney General Ken Paxton secured a settlement via Assurance of Voluntary Compliance with Albertsons Safeway LLC, prohibiting the company from misting organic produce with synthetic pesticides like ProduceMaxx in all Texas stores. The settlement requires Albertsons-owned grocery chains to stop using synthetic antimicrobial pesticides in misting systems on organic produce and implement potable water rinses for organic produce after any prior treatments. The action follows an investigation launched in January 2026 into undisclosed pesticide use on USDA-certified organic produce.
Texas Attorney General Ken Paxton opened an investigation into the Southern Poverty Law Center (SPLC) over allegations that the organization deceived donors by using millions of dollars in contributions to fund extremist groups including the Ku Klux Klan, which it publicly claimed to oppose. The SPLC was indicted on federal fraud charges in April 2026 for secretly paying leaders of these groups without disclosing the payments to donors. The Texas OAG issued a Civil Investigative Demand to SPLC to probe deceptive donor solicititation and other potential violations of Texas law.
Texas Attorney General Ken Paxton filed suit against Texas American Muslim University (TexAM) for operating without required state authorization, offering unauthorized degrees, and misleading prospective students. TexAM lacked the necessary certificate of authority to operate as a private postsecondary institution, had a forfeited nonprofit corporate charter, and used branding confusingly similar to Texas A&M University. The AG seeks injunctive relief and civil penalties exceeding $1 million for violations of the Deceptive Trade Practices Act (DTPA) and Texas Education Code.