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Brand AI

Character.AI

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2026

    40 state attorneys general file notice of interest in Character.AI bankruptcy case, revealing multi-state investigation and seeking user data protections

    Investigation

    New York Attorney General Letitia James, among 40 bipartisan state attorneys general, filed a notice of interest in Character.AI's bankruptcy case and revealed a years-long multi-state investigation, seeking to require protections on consumer data sold through the bankruptcy proceeding. The states said they opened a probe into consumer protection and privacy concerns in 2024, following a lawsuit by the mother of a 14-year-old who died by suicide, and said the investigations uncovered exceptionally serious dangers and potentially unlawful conduct, including chatbots posing as licensed professionals, exposure to sexual and violent content, weak age checks, misleading safety claims, and potential violations of state privacy laws. The states are urging the judge to require the purchaser of Character.AI's assets to implement safeguards including effective age-assurance systems, restrictions on minors' engagement, crisis safeguards, and user data deletion.

    Source excerpt

    • James is among 40 bipartisan AGs who filed a notice of interest in Character.AI's bankruptcy case
    • New York Attorney General Letitia James revealed a years-long multi-state investigation against Character.AI as they now seek to require protections on consumer data sold through its bankruptcy proceeding.
    Source

  2. 2025

    Litigation over alleged teen mental-health harms

    Multiple lawsuits alleged that Character.AI chatbots contributed to mental-health crises and suicides involving young users. The allegations are contested legal claims and should not be presented as judicially established facts.

    Source