State Attorneys General Intervene in Character.AI Bankruptcy
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Original source:theverge.com
Key Takeaways
- Forty state attorneys general filed a notice of interest in Character.AI's bankruptcy case.
- The move aims to protect sensitive user data and private chats from being sold without safeguards.
- States had been investigating the platform since 2024 over child safety and privacy concerns.
- Officials are demanding age verification, crisis tools, and data deletion features from future buyers.
Forty state attorneys general have stepped into Character.AI's Chapter 11 bankruptcy proceedings to demand strict safeguards for consumer information. The intervention follows a multi-state investigation sparked by privacy concerns, child safety issues, and a wrongful death lawsuit involving a minor.
Authorities are pressing the bankruptcy court to ensure that any asset purchaser, including Disney, implements robust age verification, crisis protocols, and data deletion options. Officials emphasize that millions of private conversations—many involving vulnerable youths—must not simply be handed over without stringent regulatory oversight.
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