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.
Review AI and other technology vendor data-processing agreements for limits on collecting and using sensitive conversation data, especially information about mental health and children, along with clear retention, deletion, and access controls. Check customer-facing terms and privacy notices for accurate descriptions of chatbot capabilities, data use, and safeguards for minors, and ensure age restrictions cannot be easily bypassed. For vendor, M&A, and asset-transfer agreements, address privacy diligence, restrictions on transferring sensitive data, successor obligations to honor existing protections, and cooperation with regulators; include employee or support-team access restrictions where personnel can view private conversations.
Entity
Character Technologies, Inc.
Industry
Technology"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."
"Attorney General Jay Jones announced that Virginia is joining a coalition of state attorneys general in filing a notice in the bankruptcy proceedings of Character Technologies, Inc."
"Published on:** October 15, 2026"
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.
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.
Virginia Attorney General Jay Jones joined a multistate coalition submitting a comment letter opposing HHS’s proposed changes to Head Start standards. The release describes concerns about proposed reductions to requirements for child safety, staffing, health services, and other program protections; it reports no privacy enforcement action or penalty.
Virginia Attorney General Jay Jones joined a coalition of 21 attorneys general in opposing a DHS rule that allows certain affirmative asylum applications to be referred to immigration court without an asylum officer interview. The coalition argues the rule violates federal law, harms asylum applicants, and bypasses notice-and-comment requirements; the release describes a comment letter, not a privacy enforcement action or monetary penalty.