Tennessee Attorney General · October 23, 2026 · Primary source
Tennessee Attorney General Fights to Protect Children and Consumers in Character.AI Bankruptcy
Summary
A coalition of more than 40 state attorneys general, led by Tennessee AG Jonathan Skrmetti, filed a Notice of Interest and Reservation of Rights in the Chapter 11 bankruptcy proceedings of Character Technologies, Inc., the company behind the AI chatbot platform Character.AI. The filing raises concerns about the company's handling of sensitive consumer data, including mental health disclosures and children's private conversations, and demands that outstanding regulatory, safety, and privacy issues be resolved before any sale or transfer of assets. The coalition argues that bankruptcy cannot be used to evade consumer protection and data privacy obligations.
What this may mean
The multistate filing puts Character.AI's bankruptcy court on notice that state regulatory and consumer protection claims must be addressed in any asset sale or reorganization plan. The development implicates state consumer protection laws and data privacy frameworks as applied to AI platforms holding sensitive personal and mental health data. No federal healthcare statute is directly enforced here, but the filing signals that state AGs view mental health disclosures held by AI companion platforms as requiring heightened protection.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
Related items
- Tennessee Attorney General · August 6, 2026Tennessee Secures Multistate Settlement in Principle with Sandoz Over Alleged Generic Drug Price-FixingScore 70
- Tennessee Attorney General · October 13, 2026Attorney General Skrmetti Announces Settlements with Generic Drug ManufacturersScore 60
- Tennessee Attorney General · July 15, 2026Attorney General Jonathan Skrmetti Secures Multistate Settlement over 23andMe Genetic Data BreachScore 60
- Tennessee Attorney General · October 6, 2026Tennessee Attorney General Urges Consumers to Check Eligibility for Generic Drug Settlement FundsScore 50
- Tennessee Attorney General · September 24, 2026Tennessee Joins 20-State Coalition Warning of National Security Risks in Pharmaceutical Supply ChainScore 46
- Tennessee Attorney General · September 19, 2026Tennessee Secures $2.35 Million in Abbott Baby Formula SettlementScore 42