New York Attorney General Letitia James has announced a multi-state investigation into Character.AI as the company faces bankruptcy. This investigation, which includes 40 bipartisan attorneys general, aims to address significant consumer data protection issues arising from the bankruptcy proceedings.
The focus is on ensuring that user data, which may have been sold or mishandled during the company’s financial downfall, is safeguarded. The regulatory scrutiny reflects growing concerns about data privacy and the responsibilities of tech companies in managing user information.
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