New Jersey joined a coalition of state attorneys general in filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive conversations it holds, including those involving children and mental health. The states seek safeguards for consumers’ personal information in any sale or transfer of the company’s business or assets; the release does not report a fine or final finding of violations.
No remedy is reported as imposed. The states’ filing seeks consumer protections in any sale or transfer and reserves their rights to challenge a proposed sale or bankruptcy plan and seek additional protections for personal information.
Review AI vendor and data-processing agreements for limits on collecting, using, retaining, and disclosing sensitive conversations, particularly mental-health information and children’s data, and require appropriate safeguards and enforceable age-related controls. Check customer-facing privacy notices and consent provisions for clear disclosures about chatbot interactions and sensitive data. Add or strengthen change-of-control, assignment, and bankruptcy provisions so privacy and safety obligations continue to bind any purchaser or successor, and require notice, restrictions on transferring data, and deletion or return of data where appropriate.
Entity
Character Technologies, Inc.
Industry
TechnologyOfficial Press Release
https://www.njoag.gov/attorney-general-davenport-seeks-consumer-protections-in-characterai-bankruptcy/
States Notice of Interest as Filed
https://www.njoag.gov/wp-content/uploads/2026/10/States-Notice-of-Interest-as-Filed.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Character Technologies, Inc."
"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."
"New Jersey is joining a coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc."
"https://www.njoag.gov/wp-content/uploads/2026/10/States-Notice-of-Interest-as-Filed.pdf"
"For Immediate Release: October 15, 2026"
Virginia joined a multistate coalition filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s privacy and safety practices and the sensitive chatbot conversations it holds. The filing seeks protections for children and consumers in any sale or transfer of the business or assets; the release does not report a fine or final finding of violations.
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.
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.
A multistate coalition co-led by New Jersey won a federal court order rejecting the Trump Administration’s decision not to request funding for the CFPB. The order struck down that decision and directed the Administration to follow the law and fund the agency; no monetary penalty or privacy violation is described.
New Jersey’s Attorney General and Division of Consumer Affairs alerted the public that three synthetic kratom-related compounds became illegal to possess or sell in the state under a temporary federal scheduling order. The release describes a controlled-substance alert, not a privacy enforcement action, and identifies no company, privacy violation, or monetary penalty.