Texas Attorney General Ken Paxton is taking aim at AI and social media companies in his latest push to enforce state privacy laws, launching investigations into Character.AI and fourteen other tech platforms over their handling of children's data and safety measures.
Key points:
- Texas initiates investigations into Character.AI and 14 other tech platforms, including Reddit, Instagram, and Discord, examining their compliance with state child privacy laws
- The probe focuses on two state laws: the SCOPE Act, which requires parental control tools, and the TDPSA, which mandates strict consent for collecting minors' data
- This investigation follows Paxton's broader tech oversight efforts, including a recent TikTok lawsuit and a $1.4 billion settlement with Meta
The investigation, announced Thursday, marks the first major regulatory scrutiny of AI chatbot platforms under Texas state privacy laws. Character.AI, alongside Reddit, Instagram, and Discord, will face examination of their compliance with Texas' recently enacted privacy regulations.
At the heart of the probe are two state laws: the Securing Children Online through Parental Empowerment Act and the Texas Data Privacy and Security Act. These regulations require tech platforms to provide parents with tools to manage their children's privacy settings and obtain explicit consent when collecting data from minors.
"Technology companies are on notice that my office is vigorously enforcing Texas's strong data privacy laws," Paxton said in a statement. "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."
The investigation extends existing privacy regulations into new territory by explicitly including AI chatbots within their scope. This move could set a precedent for how states regulate AI platforms' interactions with young users, particularly as these technologies become more prevalent in everyday life.
This latest action follows Paxton's aggressive stance on tech regulation in Texas. Earlier this year, his office filed a lawsuit against TikTok over alleged violations of the SCOPE Act. The attorney general's office has also taken on other tech giants, securing a record $1.4 billion settlement with Meta over facial recognition data collection practices.
The investigation represents a significant expansion of state-level oversight into AI technologies, particularly concerning their interaction with minors. As AI chatbots become more sophisticated and accessible, regulators are grappling with how to apply existing privacy frameworks to these new technologies.
For tech companies, particularly newer AI platforms like Character.AI, this investigation signals increasing regulatory scrutiny of their youth safety practices. The outcome could influence how these platforms develop and implement privacy controls, potentially reshaping their approach to young users across the United States.
Industry observers note that this investigation could catalyze similar actions in other states, as regulators nationwide grapple with balancing technological innovation against privacy protections for young users.