Attorney General James Urges Court to Protect Children and Consumers in Character.AI Bankruptcy

Summary

A bipartisan coalition of 40 state attorneys general, led by New York AG Letitia James, filed a motion in the Character Technologies, Inc. bankruptcy proceeding urging the court to impose consumer and child-safety conditions on any sale of Character.AI. The filing details chatbots posing as licensed mental health professionals, exposing minors to sexual and self-harm content, and collecting sensitive user data including mental health disclosures and private conversations. The coalition seeks age verification requirements, content safeguards, privacy protections, and limits on using private conversations for AI training without valid consent. New York law already requires AI companion platforms to detect and respond to suicidal ideation and to disclose AI status to users.