US states say consumer protections must be part of any Character.AI sale
By Emma Whitford ( October 14, 2026, 21:26 GMT | Insight) -- Any court-approved sale of Character Technologies' business or assets must include explicit “terms of protection” for children and other Character.AI users, a coalition of state attorneys general led by Colorado AG Phil Weiser said. The chatbot startup cited states’ ongoing regulatory scrutiny as a factor in its decision to file for Chapter 11 Bankruptcy this week.Any court-approved sale of Character Technologies’ business or assets must include explicit “terms of protection” for children and other Character.AI users, a coalition of state attorneys general led by Colorado AG Phil Weiser said. The chatbot startup cited states’ ongoing regulatory scrutiny as a factor in its decision to file for Chapter 11 Bankruptcy this week....
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