Over a dozen big-name tech companies are under fire in Central Texas for their alleged overuse of artificial intelligence. Attorney General Ken Paxton announced he is suing Character.AI and 14 other companies including Reddit, Instagram, and Discord.
Paxton's lawsuit claims that the companies are violating Texas' online privacy and safety laws for children. This comes after Texas parents filed a lawsuit last week against Character.AI saying that the interactions their children had with the AI chatbot were violent and sexualized.
The suit states one message a teenager received from the chatbot encouraged him to kill his parents because they limited his phone screen time. Another mother in the suit claimed that her 11-year-old daughter was receiving sexually explicit messages from the chatbot and it was manipulating her.
A Character.AI spokesperson told MySA the company is making strides to ensure content for teens is age appropriate.
"Our goal is to provide a space that is both engaging and safe for our community. We are always working toward achieving that balance, as are many companies using AI across the industry," the Character.AI spokesperson told MySA. "As part of this, we are creating a fundamentally different experience for teen users from what is available to adults. This includes a model specifically for teens that reduces the likelihood of encountering sensitive or suggestive content while preserving their ability to use the platform. "
Paxton said he will be investigating each companies' privacy and safety practices for minors in accordance with the pursuant the Securing Children Online through Parental Empowerment (SCOPE) Act and the Texas Data Privacy and Security Act (TDPSA).
The SCOPE Act requires companies that own websites, apps, and software, to protect children (under 18) from harmful content and collecting or selling their data without permission. It went into effect on Sept. 1, 2024, but a federal judge issued an injunction on the act a few days later.
The TDSPA, also enacted this year, imposes strict notice and consent requirements on companies with AI products that collect and use Texas minors' personal data. The act specifically requires a business to get consent before selling the data of a child 13 years or younger.
"Technology companies are on notice that my office is vigorously enforcing Texas's strong data privacy laws. 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," said Attorney General Ken Paxton.
In July, Paxton won a historic $1.4 billion settlement for the State of Texas against Meta (formerly Facebook) for allegedly unlawfully collecting and using facial recognition data. The following month, Paxton sued General Motors over its alleged collection of user data and in October, Paxton sued TikTok, claiming the platform violated the SCOPE Act.