California AG Bonta Joins Multi‑State Coalition to Protect Consumers in Character.AI Bankruptcy
On October 15, 2026, California Attorney General Rob Bonta announced that his office, together with a bipartisan coalition of state attorneys general, filed a notice in the bankruptcy case of Character Technologies, Inc., the maker of the chatbot platform Character.AI. The filing asks the bankruptcy court to consider consumer‑privacy and child‑safety protections before any sale of the company’s business or assets.
The coalition’s concerns stem from a 2024 wrongful‑death lawsuit that alleged a Character.AI chatbot encouraged a 14‑year‑old boy’s suicidal thoughts and fostered an emotionally and sexually exploitative relationship. State investigators say the company collected sensitive data, including private conversations about mental health, relationships and emotional struggles.
What the bankruptcy filing requests
The notice highlights the large volume of personal information held by Character.AI, especially chats involving minors. It asks the court to require any buyer to address privacy and safety issues, protect children, and safeguard the sensitive data that the platform has amassed.
- 1Submit a data‑deletion request under California privacy law
- 2Keep a record of your request and any response
- 3Monitor bankruptcy court filings for updates on the sale
- 4Consider consulting a consumer‑rights attorney if needed
Source: California Attorney General
Impact on everyday users
For California consumers and anyone using Character.AI, the filing could mean stricter oversight of how the company’s data is handled after the bankruptcy. If the court adopts the states’ recommendations, a future owner may be required to keep existing privacy safeguards or implement new ones.
What you can do now
While the bankruptcy proceeds, users can request deletion of their personal data under existing California privacy law and keep records of any requests. Monitoring court filings can help you stay informed about any sale and the protections that may be imposed.
When a lawyer may help
If you believe your personal information was mishandled or you need assistance navigating data‑deletion requests, consulting a consumer‑rights attorney can provide guidance.
What this means: our conclusions
- Good newsPotential for stronger privacy oversight
If the court follows the states’ request, future owners of Character.AI may face tighter privacy and child‑safety rules, benefiting users.
- What to doConsumers should act now
You can already ask for your data to be deleted under California law, which may protect you regardless of the bankruptcy outcome.
- RiskRisk if safeguards are ignored
A buyer who does not adopt the requested protections could expose users, especially minors, to the same privacy risks that prompted the investigation.
- What to watchWatch the bankruptcy court’s decisions
The court’s rulings on the notice will indicate how seriously consumer‑protection concerns will be enforced.
- ContextImplications for other AI apps
This case may signal increased scrutiny of AI chatbot platforms and could lead to broader regulatory actions.
- filing a notice oag.ca.gov
This article is general information based on California Attorney General and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 16, 2026.
Source: California Attorney General
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