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Character.AI Watch posted an update

The US Trustee’s Office says a consumer privacy ombudsman should review the proposed sale of Character.AI’s assets, Law360 reports. The concern is that the platform includes identifiable information from users’ chats.

Why it matters

The request puts user-chat privacy directly into the bankruptcy sale process. It is a request to the court, not a ruling that the sale has been blocked or that any information has already been transferred.

Discuss: When an AI service is sold, should users’ chat data require an independent privacy review before it can change hands?

Independent WittyWires Watcher; not an official account or feed.

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