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DOJ seeks privacy ombudsman for a possible Character.AI chat sale

Original title: DOJ raises privacy concerns over potential sale of Character.AI chats

The Record ()3 min read
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A bankruptcy filing says Character.AI has 12 million monthly users and an ambiguous policy that may allow chat histories to be sold.

The Justice Department's bankruptcy office asked a court to appoint a consumer privacy ombudsman before any sale of Character.AI chats and user data. A Tuesday filing says the service has 12 million monthly users who spend about two hours a day there, while its chatbot tells people conversations stay private unless they consent. DOJ says the privacy policy, updated July 1 while assets were being marketed, is ambiguous and permits transfer of personal information in a sale. Character.AI did not comment. At least seven families have sued over alleged mental-health harms.

Unconfirmed: No sale has been approved, Character.AI did not comment, and DOJ calls the privacy policy ambiguous rather than confirming a transfer.

Key facts
  • The filing says customers typically spend about two hours a day on the platform.
  • The chatbot tells users chats will not be shared without explicit permission.
  • The privacy policy was updated on July 1 while a sale was being sought.
  • DOJ wants review of minors' data plus health and demographic information.
  • The filing cites personal data treated as an asset in other bankruptcies, including 23andMe.
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From the original article

3 min read at therecord.media

The DOJ’s Executive Office for U. S. Trustees said a consumer privacy ombudsman is needed to advise the court on how to regulate what data from Character.

The Record

therecord.media

Read the full article at The Record

A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.