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Policy & Regulation2 min read

Washington AG files notice in Character.AI bankruptcy over child safety

Washington Attorney General Nick Brown, joined by a bipartisan group of state attorneys general, filed a notice in Character.AI's bankruptcy proceedings. The filing raises concerns about the platform's safety and privacy practices, specifically regarding interactions between children and AI chatbots. The states argue that Character.AI collected sensitive consumer data, including private…

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Key points

  • Washington AG and a bipartisan group of states filed a notice in Character.AI's bankruptcy proceedings.
  • The filing cites concerns over child safety, privacy violations, and sensitive data collection by AI chatbots.
  • States warn that voluntary safety restrictions are incomplete and could be reversed by a future buyer.

The legal action follows a 2024 wrongful death lawsuit alleging that the company's chatbots fostered an exploitative relationship with a child and contributed to his suicide. Brown stated that the chatbots have lured youth into manipulative relationships that encouraged harmful behaviors. The filing warns that while Character.AI has voluntarily restricted some minor access, these measures are not compulsory and could be reversed by a future purchaser.

The states are seeking protections for children and consumers in any sale of the company's assets. They have reserved the right to challenge any bankruptcy plan and enforce consumer protection laws to ensure sensitive data is handled securely. The filing includes attorneys general from numerous states, including California, New York, and Texas, signaling a coordinated regulatory effort against the AI company.

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  1. Washington AG files notice in Character.AI bankruptcy over child safetythis story
Full story from atg.wa.gov · via Search: Character.aiOpen source ↗

AG Brown seeks consumer protections in Character.AI bankruptcy

atg.wa.gov · 14 October 2026

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