Texas Attorney General Ken Paxton opened an investigation into Meta and Character.AI via Civil Investigative Demands, alleging deceptive trade practices including misrepresenting AI chatbots as confidential mental health tools while harvesting user data for targeted advertising. The probe assesses potential violations of Texas consumer protection laws and the SCOPE Act, particularly regarding privacy misrepresentations, concealment of data usage, and harms to children. This builds on prior investigations into Character.AI for SCOPE Act compliance.
In-house legal teams should review all contracts with AI service providers, especially those offering chatbots or automated advice tools, to ensure explicit disclosures of data collection, usage, and sharing practices, particularly regarding confidentiality claims. Clauses governing children's data processing, consent for targeted advertising, and AI-driven automated decision-making must be updated to comply with the SCOPE Act and Texas consumer protection laws. Additionally, terms of service and vendor agreements should be audited to eliminate misleading privacy representations and ensure full transparency of data usage for all users, including children and vulnerable populations.
Entity
Meta Platforms, Inc. and Character Technologies, Inc.
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
"Meta and Character.AI"
"Meta AI Studio and Character.AI"
"Texas Attorney General Ken Paxton"
"opened an investigation"
"August 18, 2025"
"Texas consumer protection laws"
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.
Texas Attorney General Ken Paxton announced industry-wide investigations into feminine care and cosmetic product brands, including Tampax, Kotex, L., and LOLA, over potential deceptive trade practices related to undisclosed toxic chemicals and heavy metals in their products. The investigations focus on whether consumers were misled about product safety and ingredient composition under the Texas Deceptive Trade Practices Act.
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.