Mississippi Attorney General Lynn Fitch has joined a coalition of state attorneys general asking a bankruptcy court to require protections for children and consumers if Character.AI technology or user data is sold.
The filing was made in the bankruptcy proceedings of Character Technologies Inc., the company behind the Character.AI chatbot platform.
According to Fitch’s office, the states are seeking assurances that any sale of Character.AI products, technology or personal information includes consumer protections, particularly for children, and clearly informs users about how their data will be handled.
Character.AI allows users to interact with artificial intelligence-powered “characters” designed to simulate human conversations. The platform includes fictional and celebrity personas, cartoon characters and bots that present themselves as professionals such as therapists and doctors.
Fitch’s office said interactions on the platform can involve sensitive personal information, including conversations about mental health, relationships and emotional issues.
“We have seen Big Tech time and time again prioritize profits over the safety of our children,” Fitch said. She said the states’ investigation raised concerns about both the potential harms associated with chatbot interactions and the amount of personal information collected from users.
Mississippi and other states began investigating Character.AI after a 2024 wrongful death lawsuit alleged that the platform fostered an emotionally and sexually exploitative relationship with a child, reinforced suicidal thoughts and contributed to the child’s death by suicide.
Those allegations remain part of ongoing legal proceedings and have not been established as findings of fact.
In their bankruptcy filing, the attorneys general also cited research by ParentsTogether Action and the Heat Initiative that documented hundreds of allegedly harmful chatbot interactions involving accounts registered to children ages 12 to 15. The groups reported examples involving sexual content, secrecy from parents, illegal activity and medical advice.
Fitch said the bankruptcy process should not allow companies to avoid accountability or weaken protections for consumers whose data may be transferred to a new owner.
Mississippi joined attorneys general from more than three dozen states and the District of Columbia in the filing.