Science & Tech · Big Tech & Internet · 6 hrs ago

DOJ seeks privacy protections for Character.AI users in bankruptcy sale

DOJ seeks privacy protections for Character.AI users in bankruptcy sale

The US Justice Department is seeking privacy protections for Character.AI users as the company goes through bankruptcy.

Its bankruptcy office wants a court-appointed privacy ombudsman to advise the judge on whether user data can be sold and under what conditions.

Character.AI has 12 million active monthly users worldwide, and many spend about two hours a day chatting with its fictional characters.

Those conversations can include sensitive details and information from minors, which may still identify users even if their names are removed.

The company’s privacy policy says personal information may be transferred if the business is sold, but the Justice Department says its terms are unclear and wants records of how policy changes were communicated.

The judge can restrict or block the sale of user data, and the court will consider how to protect users’ information as the bankruptcy proceeds.

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Sydney SaubestreSenior policy analyst focused on privacy and data at the Center for Democracy and Technology
Character.AI’s policy reserves the right to disclose user data in connection with a sale of the company or its assets regardless of whether consumers expect their most private conversations to be treated as a sellable asset
via The Record
Users agree to a privacy policy long before anyone contemplates a sale, and that agreement shouldn’t be the only protection for their most private conversations
via The Record