Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
The states are seeking consumer protections in any sale or transfer of the company’s business or assets and intend to remain involved in the bankruptcy proceedings. No remedy has been imposed in the press release.
Review vendor and data-processing agreements for limits on collecting, using, retaining, and transferring sensitive chatbot conversations, including mental-health-related information and children’s data; require appropriate security, confidentiality, deletion, and audit obligations. For customer-facing terms and privacy notices, confirm disclosures accurately explain conversational data practices and protections for minors, and review age-assurance and minor-access commitments for enforceability and resistance to circumvention. For acquisition, bankruptcy, or change-of-control provisions, require privacy-compliant transfer conditions, continued protections for personal information, and clear responsibility for honoring existing privacy commitments.
Entity
Character Technologies, Inc.
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-tong-seeks-consumer-protections-in-characterai-bankruptcy
states notice of interest as filed.pdf?rev=5b089a04d54045b8a
https://portal.ct.gov/-/media/ag/press_releases/2026/states-notice-of-interest-as-filed.pdf?rev=5b089a04d54045b8ab8644365de4299b&hash=157EDB6D00D68D6BBCAE0796CB4550D8
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"Character Technologies, Inc., the company behind the popular chatbot company Character.AI."
"Through chats with these characters, the company has collected sensitive consumer data, including private conversations about users' mental health, relationships, and emotional struggles."
"The states’ investigation identified potential consumer protection and privacy violations."
"Connecticut is joining a coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc."
"calls for protections for children and consumers in any sale of the company's business or assets."
Colorado Attorney General Phil Weiser led a multistate coalition in filing a notice in Character Technologies, Inc.’s bankruptcy, citing concerns about the company’s safety and privacy practices and sensitive chatbot conversations involving children and adults. The filing seeks protections in any sale or transfer of the company’s business or assets; no penalty or final remedy is reported.
New York Attorney General Letitia James and a bipartisan coalition of 39 other attorneys general filed a motion in Character Technologies, Inc.’s bankruptcy, citing risks to children and sensitive user information and potential violations of state privacy laws. The coalition asks the court, the company, and any prospective buyer to require meaningful privacy and safety protections; no fine or final remedy is reported.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.
$1.1M
Connecticut Attorney General William Tong led a coalition of 45 states and territories seeking court approval for settlements resolving allegations that Ascend Laboratories, Citron Pharma, and Mayne Pharma conspired to inflate prices and limit competition for generic prescription drugs. Ascend agreed to pay $400,000, Mayne agreed to pay $650,000, and Citron’s settlement includes non-monetary terms; the companies also agreed to internal reforms.