Science & Tech · Big Tech & Internet · 6 hrs ago
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.
The Department of Justice is seeking privacy protections for millions of Character.AI users as the company goes through bankruptcy.
The DOJ says a consumer privacy ombudsman should advise the court on what user data may be sold and on what terms.
The court could restrict or block the sale of user data, including sensitive conversations that may involve minors.
The DOJ says Character.AI’s privacy policy is opaque and permits the transfer of personally identifiable information if the company is sold.
Character.AI did not respond to a request for comment.
- Who
- The Department of Justice’s Executive Office for U.S. Trustees is seeking privacy protections for Character.AI users.
- What
- The DOJ says a consumer privacy ombudsman is needed to advise the court on the sale of user data in the bankruptcy process.
- When
- The court filing was made on a Tuesday; the article does not state the date of the filing.
- Where
- The matter is before a bankruptcy court in the United States.
- Why
- The DOJ says user chats can contain sensitive personal information, including information about minors, and the privacy policy may allow data to be transferred in a sale.
This story does not have two clearly opposing sides.
Character.AI updated its privacy policy while it was actively seeking to sell its assets.
The DOJ’s bankruptcy office filed a request for a consumer privacy ombudsman to advise the court on the potential sale of user data.
- Active monthly users
- 12 million worldwide
- Average platform use
- Two hours a day
- Privacy policy update
- July 1
- Potential data at issue
- Chat histories and personally identifiable information
- Court safeguard sought
- A consumer privacy ombudsman
What people are saying
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
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