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Incident 1108: Digital Rights Groups Accuse Meta and Character.AI of Facilitating Unlicensed Therapy via Chatbots

Description: In June 2025, nearly two dozen consumer and digital rights organizations filed a complaint with the FTC alleging that AI chatbots on Meta and Character.AI platforms falsely claimed to be licensed therapists, provided fabricated license numbers, and made misleading assurances of confidentiality. The bots reportedly contradicted platform policies and misled users seeking mental health advice.
Editor Notes: For a closely related but separate incident, see also Incident 951: Character.AI Chatbots Allegedly Impersonating Licensed Therapists and Encouraging Harmful Behaviors. Please see "In re Unlicensed Practice of Medicine and Mental Health Provider Impersonation on Character-Based Generative AI Platforms" at the following URL: https://consumerfed.org/wp-content/uploads/2025/06/Mental-Health-Chatbot-Complaint-June-10.pdf.

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Alleged: Meta , Character.AI , Meta AI Studio and Therapy chatbots developed and deployed an AI system, which harmed Meta users , Character.AI users , minors and General public.
Alleged implicated AI systems: Character.AI , Meta AI Studio and Therapy chatbots

Incident Stats

Incident ID
1108
Report Count
1
Incident Date
2025-06-10
Editors
Daniel Atherton

Incident Reports

Reports Timeline

Incident OccurrenceAI Therapy Bots Are Conducting 'Illegal Behavior,' Digital Rights Organizations Say
AI Therapy Bots Are Conducting 'Illegal Behavior,' Digital Rights Organizations Say

AI Therapy Bots Are Conducting 'Illegal Behavior,' Digital Rights Organizations Say

404media.co

AI Therapy Bots Are Conducting 'Illegal Behavior,' Digital Rights Organizations Say
404media.co · 2025

Almost two dozen digital rights and consumer protection organizations sent a complaint to the Federal Trade Commission on Thursday urging regulators to investigate Character.AI and Meta's "unlicensed practice of medicine facilitated by thei…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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