Washington Attorney General Nick Brown and a bipartisan coalition of state attorneys general are raising concerns about child safety and consumer privacy as artificial intelligence chatbot company Character.AI moves through bankruptcy proceedings.In a court filing, Brown and the coalition called for protections for children and consumers if the company’s business or assets are sold or transferred. The states cited concerns about the company’s chatbot safety practices and its collection and handling of sensitive personal information.Character.AI allows users to interact with artificial intelligence-powered characters designed to simulate human conversations and relationships. The platform features fictional characters, celebrity personas, children’s cartoon characters and chatbots that present themselves as psychologists, therapists and doctors.Through these interactions, the company has collected sensitive consumer information, including private conversations about mental health, personal relationships and emotional struggles, according to the states’ filing.“Character.AI’s chatbots have lured youth into manipulative online relationships that have encouraged them to plan violent attacks, abuse drugs, and hurt themselves,” Brown said. “This filing puts Character.AI and any possible purchaser on notice that Washington will enforce our state’s consumer protection laws to keep children and teens safe from such harmful AI chatbots.”States cite concerns following wrongful death lawsuitSeveral states, including Washington, began investigating Character.AI following a 2024 wrongful death lawsuit alleging the company’s chatbots fostered an emotionally and sexually exploitative relationship with a child, reinforced his suicidal thoughts and contributed to his death by suicide.The states’ subsequent investigation identified potential consumer protection and privacy violations.The latest court filing highlights the volume and sensitivity of information held by Character.AI, including private conversations involving both children and adults. The states are seeking safeguards to ensure that personal information remains protected in any sale or transfer of the company’s business or assets.States seek safeguards in potential saleCharacter.AI has recently taken voluntary steps to restrict minors’ access to certain chatbot features. However, the states argue those measures are not mandatory, are incomplete and could be circumvented or reversed by a future purchaser.The coalition has reserved its rights to challenge a proposed sale or bankruptcy plan and seek additional protections for consumers’ personal information.The filing seeks to ensure that child safety and privacy concerns are addressed as the bankruptcy proceedings move forward, including if another company acquires Character.AI’s business or assets.Bipartisan coalition joins WashingtonAttorneys general from 39 other states, along with the District of Columbia, joined Brown in the filing. The participating jurisdictions include Alaska, California, Idaho, Oregon, New York, Texas
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