Oregon and a bipartisan coalition of states filed 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, including children’s chatbot conversations. The filing calls for protections if the company’s business or assets are sold or transferred; the release does not report a penalty or court-ordered remedy.
The states’ filing calls for protections for consumers’ personal information in any sale or transfer of the company’s business or assets and reserves the states’ rights to challenge a proposed sale or bankruptcy plan. The release does not state that the court has ordered remedies.
Review AI platform and other vendor data-processing agreements for limits on collecting and using children’s data and sensitive mental-health conversations, safeguards for private user communications, and obligations that continue through a sale, assignment, change of control, or bankruptcy. Add or confirm restrictions on transferring or selling personal information to a purchaser, require advance notice and appropriate consent or other legal basis for material changes in data use, and require the vendor to flow these protections down to subprocessors and successors. Customer-facing privacy commitments should accurately describe data handling and minor-access controls; employee agreements are less directly implicated, but teams managing these vendors should ensure review and escalation procedures cover proposed transfers of sensitive data.
Entity
Character Technologies, Inc.
Industry
TechnologyOfficial Press Release
https://www.doj.state.or.us/media-home/news-media-releases/attorney-general-rayfield-takes-action-to-protect-kids-and-consumers-in-character-ai-bankruptcy/
States Notice of Interest as Filed
https://www.doj.state.or.us/wp-content/uploads/2026/10/States-Notice-of-Interest-as-Filed.pdf
Oregon Attorney General Enforcement Page
https://www.doj.state.or.us/consumer-protection/
"October 14, 2026"
"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."
"including private chatbot conversations involving children and adults"
"Oregon and a bipartisan coalition of states have filed a notice"
"calling for protections for children and consumers in any sale of the company’s business or assets."
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.
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.
Minnesota and 39 other attorneys general filed 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, including children’s private chatbot conversations. The states seek protections for consumers in any sale or transfer of the business or assets; the filing does not impose a penalty or establish a final remedy.