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Kentucky suit against Character.AI is first state-level case over chatbots in US

By Mike Swift ( January 13, 2026, 00:49 GMT | Insight) -- Character.AI has been sued by Kentucky's Republican attorney general, Russell Coleman, in what the state says is the first US regulatory suit against a chatbot company. The suit filed in a Kentucky state court in Franklin County alleges that Character.AI violated the Kentucky Consumer Protection Act, the Kentucky Consumer Data Protection Act and other laws, and that Character.AI is a “dangerous technology that induces users into divulging their most private thoughts and emotions and manipulates them with too frequently dangerous interactions and advice."Character.AI has been hit with its first legal challenge by a US regulator, with Kentucky’s attorney general suing the beleaguered AI chatbot startup on claims that it violated state laws protecting the privacy and online safety of the state’s minors....

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