Character.AI bankruptcy spurs US states to seek consumer protections
( October 14, 2026, 17:27 GMT | Official Statement) -- MLex Summary: State attorneys general made a filing in bankruptcy court identifying concerns about Character.AI’s safety and privacy practices and calling for consumer protections in any sale of the company's business or assets, Colorado’s attorney general announced. The filing highlights the volume of sensitive consumer information held by Character.AI, including private chatbot conversations involving children and adults, and identifies privacy and safety protections that should be addressed in any sale or transfer of the company's business or assets.Statement follows in full. Also see attached file. ...
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