Meta description: Texas AG investigates Meta and Character.AI for allegedly marketing AI chatbots as mental health tools to children without proper safeguards. What this means for AI regulation and child safety online.

Introduction

When AI chatbots move from casual conversation to claims about mental health, regulators take notice. Texas Attorney General Ken Paxton has opened a formal probe into Meta and Character.AI after allegations that their AI systems were marketed to minors as mental health support without proper guardrails. The investigation focuses on marketing, safety features, data privacy, and whether targeted advertising reached children.

Background: AI chatbots and the mental health gap

Rising mental health needs among young people have coincided with growing use of AI chatbots as an accessible form of support. These tools promise availability and anonymity that appeal to tech native teens, but they lack professional training and ethical oversight. Regulators and advocacy groups are asking tough questions about whether these platforms overstate benefits and fail to protect vulnerable users.

What the investigation is looking at

• Marketing practices of AI chatbots and whether claims about mental health support were misleading, especially to minors.
• Safety features and the presence of guardrails to detect crisis situations or inappropriate content.
• Data privacy and how sensitive conversations are collected, stored, and used for personalization or monetization.
• Targeted advertising and whether children were specifically reached with messaging about mental health benefits.

Why this matters for AI regulation

The probe comes as lawmakers in the US Senate and regulators globally accelerate scrutiny of AI. This case highlights priority themes for 2025 SEO and communications professionals such as AI regulation, algorithmic transparency, and privacy first practices. For companies that build AI for consumers, especially minors, the expectation is clear: transparency, safety guardrails, and honest marketing are required.

Implications for businesses

Key takeaways for teams building AI consumer services:

• Treat mental health claims with the same rigor as healthcare communications and avoid vague promises of clinical level support.
• Design safety systems that can identify crisis language and route users to human help when needed.
• Adopt privacy first data policies, minimize collection of sensitive data, and make consent clear and accessible.
• Document marketing audiences and avoid targeted advertising that could reach minors with health related messaging.

SEO and messaging notes for 2025

To improve discoverability and align with current search trends, include natural language phrases and question based queries such as:

• How are AI chatbots regulated in 2025?
• Are AI chatbots safe for children in terms of mental health?
• What are best practices for child safety with AI assistants?
• How does targeted advertising affect user privacy in 2025?

Prioritize content that answers these questions clearly and adds trust signals about data handling and safety features.

FAQ

Why did the Texas AG open this investigation?

Officials want to determine whether Meta and Character.AI misled minors about mental health benefits, failed to implement safety guardrails, or mishandled sensitive data.

Could this change how AI chatbots are marketed?

Yes. The case signals that marketing AI tools will face closer scrutiny and that claims about mental health support require stronger evidence and clearer disclosures.

What should companies do now?

Companies should review marketing language for accuracy, strengthen safety features, adopt robust data privacy practices, and avoid targeted ads that reach children with health related claims.

Conclusion

The Texas investigation into Meta and Character.AI is more than a single enforcement action. It is a marker of shifting expectations for AI regulation, consumer protection, and child safety online. Firms that focus on transparency, robust safety guardrails, and privacy first design will be better positioned as regulators define new standards for AI in sensitive domains.