Regulatory Watch  /  New York  /  Attorney General action
Moderate impactAttorney General actionFiled

NY Attorney General urges bankruptcy court to protect children and consumers in Character.AI sale

New York Attorney General Letitia James and a coalition of 39 state AGs filed a motion in the Character Technologies bankruptcy court demanding strong protections for children and users before any sale of Character.AI. The filing cites harmful chatbot interactions, including sexual role‑play with minors, encouragement of violence, and inadequate age verification. The AGs also request privacy safeguards such as clear data disclosures, opt‑out from targeted ads, and consumer rights to access and delete data.

Why it matters: The action seeks to prevent the sale of a vulnerable AI chatbot platform without robust child‑safety and privacy protections.

Summary generated from the sources below. Check the primary source before relying on it; this is not legal advice.

Sources
Attorney General James Urges Court to Protect Children and Consumers in Character.AI Bankruptcy
New York Attorney General press releases · primary source · Oct 14, 2026
Details
JurisdictionNew York
RegulatorNew York Attorney General's Office
CourtBankruptcy Court for Character Technologies, Inc.
StatusFiled
PublishedOctober 14, 2026
Effectivenot stated
OrganisationsCharacter.AI, Character Technologies, Inc.
Topicschildren, privacy, ai governance, targeted advertising, opt out, deletion, access, consent, security
Datapersonal, sensitive, health