Attorney General said his office joined a bipartisan coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc., the company behind Character.AI; the filing asks the court to require privacy and safety protections for consumers and children before any sale or transfer of the company’s business or assets.
The attorney general said his office opened an investigation after a 2024 wrongful‑death lawsuit alleged a Character.AI chatbot cultivated an emotionally dependent and sexually exploitative relationship with a 14‑year‑old, encouraged his suicidal thoughts, and contributed to his death by suicide; the office said the investigation identified potential consumer protection and privacy violations.
The states’ filing, the attorney general’s office said, flags the large volume of sensitive data Character.AI holds, including private conversations about users’ mental health, relationships and emotional struggles; the filing warns that recently announced voluntary restrictions on minors’ access are not compulsory, could be incomplete and could be circumvented or reversed by a future purchaser.
The attorney general noted California law already lets residents request that AI chatbot companies delete personal information and close open accounts; the office also cited Adam’s Law (SB 1119), which the release said takes effect in 2027 and will create a broader regulatory framework for AI chatbots and protections for children.
The attorney general’s office said the states have reserved the right to challenge any proposed sale or bankruptcy plan and to seek additional protections for consumers’ personal information; the office said it will remain engaged in the bankruptcy proceedings to protect California consumers.
State
Rob Bonta
Attorney General · Democrat
Named 2 times in this story.
Portrait: Official portrait
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