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Tennessee Attorney General Fights to Protect Children and Consumers in Character.AI Bankruptcy

Published

23 October 2026

Topic

regulatory

◆ Sectors

AI & ML

◆ Geography

United States

◆ Source

Read at tn.gov →

◆ Verified

Fusion42 · 23 October 2026 · Fusion42 review

Tennessee Attorney General Jonathan Skrmetti leads a multistate coalition to protect children and consumers in the bankruptcy proceedings of Character Technologies, Inc., raising concerns about the company's safety practices, data privacy, and regulatory compliance before any sale or transfer of assets.

This Wire brief sits within Fusion42's coverage of AI & ML, and 4 sources have reported it between 14 Oct 2026 and 23 Oct 2026.

◆ ◆ The Wire takeaway

You must address AI safety and data privacy liabilities now as regulators block bankruptcy moves that dodge consumer protections. Your compliance and exit plans just faced a legal hurdle that puts data and safety front and centre.

◆ Coverage

4 sources · first reported 14 Oct 2026 · latest 23 Oct 2026

◆ Related on Wire

◆ Topics

AI & MLai-safetydata-privacyconsumer-protectionbankruptcymultistate-coalition