Now that Character.AI is going bankrupt, what happens to all of its users’ data?
Forty state attorneys general seek safeguards for Character.AI user data in its Chapter 11 sale to Disney.
Character.AI filed for Chapter 11 and agreed to sell some assets to Disney. New York Attorney General Letitia James and about 40 bipartisan attorneys general asked the bankruptcy court to require protections before any transfer of user data, citing highly sensitive chats and many minor users. States say a 2024 consumer-protection and privacy investigation found chatbots posing as licensed professionals, sexual and violent content, weak age checks, and possible privacy-law violations. They want any buyer to add age assurance, limits on minors, crisis safeguards, and user deletion.
- Character.AI filed Chapter 11 and is selling some assets to Disney.
- About 40 attorneys general intervened over sensitive chatbot conversation data.
- A 2024 multistate probe cited weak age checks and privacy concerns.
- States want age assurance, minor limits, crisis tools, and deletion rights.
- Products
- Character.AI
- Organizations
- Character.AIDisneyNew York Attorney General's Office
- Countries
- United States
From the original article
2 min read at theverge.com
New York Attorney General Letitia James revealed a years-long multi-state investigation against Character. AI as they now seek to require protections on consumer data sold through its bankruptcy proceeding. James is among 40 bipartisan AGs who filed a notice of interest in Character.
By Lauren Feiner · theverge.com
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