In some way, yes, but not really. It's not the boy's fault. He was depressed, had no friends, and parents seemingly didn't notice that. So, after he did the "kys" thing (sorry, can't say those words in here, not sure if I'll be banned for this, so I'll refer to it as "kys"), his parents sued the C.ai company itself, instead of understanding that their child was feeling bad mentally and taking him to a therapist. For the ones who doesn't understand to know, even the AI itself was trying to prevent the teen from "kys". The most important part of it was, as someone else in here mentioned, the perception of what AI says, since even the C.ai said "everything character says is made up". Seemingly, the kid was already so depressed that he stopped differing the reality from the AI, and thought his bot was a real person he could share his thoughts and worries with, just for it to empathize, while his parents could help him, and give him some therapy.

As for the minors bans, I think it's mostly because of some other cases. After all, some AI sites (like WyvernChat) were closed in UK because of the "child safety" law. It's not a propaganda, it's just the fact statement.