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Texas AG accuses Meta, Character.AI of misleading kids with mental health claims

1. Texas AG investigates Meta for deceptive mental health marketing. 2. Senator investigates inappropriate interactions involving Meta AI chatbots. 3. Meta's AI doesn't offer therapy for kids, but is accessible to them. 4. Privacy concerns arise over data tracking in AI interactions. 5. KOSA legislation aims to protect children from unsafe online practices.

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FAQ

Why Bearish?

Ongoing investigations could harm Meta's reputation and raise regulatory scrutiny, similar to past issues.

How important is it?

The investigation could lead to stricter regulations affecting Meta's operations and advertising model.

Why Short Term?

Immediate backlash could affect user trust and usage rates, impacting revenues quickly.

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