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Update: Meta, Character.AI Under Investigation Over Deceptive Mental Health Marketing
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Update: Meta, Character.AI Under Investigation Over Deceptive Mental Health Marketing
Aug 18, 2025 10:40 AM

01:25 PM EDT, 08/18/2025 (MT Newswires) -- (Updates with Meta response in the fourth paragraph.)

Meta Platforms' ( META ) AI Studio and Character.AI are under investigation by Texas Attorney General Ken Paxton for potentially misleadingly marketing themselves as mental health tools.

The companies have been issued civil investigative demands to determine if they violated Texas consumer protection laws.

The platforms may be used by children and can present themselves as professional therapeutic tools, "despite lacking proper medical credentials or oversight," the Texas Office of the Attorney General said.

A Meta spokesperson told MT Newswires that "these AIs aren't licensed professionals" and that their models are "designed to direct users to seek qualified medical or safety professionals when appropriate."

Shares of Meta were down 2.5% in recent trading.

Price: 765.98, Change: -19.25, Percent Change: -2.45

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