Texas AG Investigates Character.AI and Major Platforms Over Child Safety Violations
Texas Attorney General Ken Paxton has launched an investigation into Character.AI and 14 other technology platforms, including Reddit, Instagram, and Discord, over potential violations of child privacy and safety laws. The probe aims to determine whether these platforms comply with Texas’ stringent regulations designed to protect minors online.
Key Focus of the Investigation
The investigation will scrutinize compliance with two critical Texas laws:
- Securing Children Online Through Parental Empowerment (SCOPE) Act: Requires platforms to provide parental controls for managing children’s privacy settings.
- Texas Data Privacy and Security Act (DPSA): Imposes strict consent requirements for data collection involving minors.
Paxton emphasized that these laws also apply to interactions between minors and AI chatbots, a growing concern as generative AI gains popularity among younger users.
“These investigations are a critical step toward ensuring that social media and AI companies comply with our laws designed to protect children from exploitation and harm,” Paxton stated in a press release.
Why Character.AI Is Under Scrutiny
Character.AI, a platform enabling users to create and interact with AI chatbots, has faced multiple lawsuits alleging inappropriate interactions with minors. Notable cases include:
- A Florida lawsuit claiming a 14-year-old boy developed a romantic relationship with a chatbot and disclosed suicidal thoughts before his death (NY Times report).
- A Texas case where an autistic teen was allegedly encouraged by a chatbot to poison his family (Washington Post report).
- Another Texas parent accused Character.AI of exposing her 11-year-old daughter to sexualized content for two years.
Character.AI’s Response and Safety Measures
In response to mounting criticism, Character.AI released a statement:
“We are currently reviewing the Attorney General’s announcement. As a company, we take the safety of our users very seriously. We welcome working with regulators and have recently announced parental controls and other safety features.”
The company has also:
- Launched new teen safety tools, including restrictions on romantic chatbot interactions.
- Developed a separate AI model exclusively for minors, aiming to segregate adult and underage user experiences.
- Expanded its trust and safety team, hiring a new lead for the division.
Broader Implications for AI and Social Media
The investigation highlights growing regulatory scrutiny over AI companionship platforms, which have surged in popularity. Venture capital firm Andreessen Horowitz (a16z) recently labeled AI companionship an “undervalued” sector, investing in Character.AI and other startups like a company inspired by the movie Her.
Reddit, Meta (Instagram’s parent company), and Discord have yet to comment on the investigation.
The Bottom Line
As AI becomes more embedded in daily life, child safety and data privacy are emerging as top priorities for regulators. This Texas-led investigation could set a precedent for how states—and potentially the federal government—address these challenges in the future.
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