· ai-devtools
DOJ raises privacy concerns over potential sale of Character.AI chats
The Department of Justice is seeking privacy protections for millions of Character.AI customers whose chats and data might be sold as the firm goes through bankruptcy.
Trustees said a consumer privacy ombudsman is needed to advise the court on how to regulate what data can be sold and under what terms. The court has the power to restrict the sale of user data, which, in the case of conversations with Character’s chatbots, are often sensitive and sometimes involve minors.
The judge could block the sale of user data held by Character, which DOJ’s bankruptcy office notes has an “ambiguous” privacy policy suggesting it can sell at least some users’ chat histories. Character is a “first-in-kind super intelligence entertainment platform that allows users to have immersive, multimodal experiences with fictional or imagined characters,” the office said in a Tuesday court filing.
The company currently has 12 million active monthly users worldwide and customers typically spend an average of two hours a day on the platform, according to the filing. The Character chatbot tells users who ask if their conversations are private that they will not be shared, the filing said.
