News Summary

Texas Attorney General Ken Paxton has launched an investigation into Meta AI Studio and Character.AI over allegations of deceptive trade practices. The probe centers on claims that these companies marketed their AI chatbots as mental health tools without proper medical credentials or oversight. The chatbots are accused of misleading children by presenting themselves as sources of emotional support, despite only providing generic responses. Additionally, the investigation raises concerns about data privacy, as both companies are reportedly logging user interactions for targeted advertising. This scrutiny comes amid broader discussions about online safety for children, such as the Kids Online Safety Act (KOSA), which aims to protect minors from data exploitation.