States seek data and safety safeguards in any Character.AI sale
State attorneys general want data access, deletion and safety protections in any Character.AI sale. Their October 14 bankruptcy notice is a request, not an order.
The big change
What changed: State officials put their proposed privacy and safety conditions before the court in Character Technologies' Chapter 11 case on October 14. They ask for consumer protections in any sale and reserve the right to challenge proposed terms.
Why it matters: A buyer's treatment of chat content and other personal data could be part of sale negotiations. The states want users to retain access and a chance to delete data before any sale of that data, alongside limits on new uses without valid consent.
What to watch: The actual sale proposal, bidding procedures and any court ruling will show whether these requests become enforceable terms. The notice itself does not grant a new deletion window or determine that user data will be transferred.







