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ARTICLE · 20 JANUARY 2026

Kentucky AG Moves To Shut Down Unsafe AI Chats

Cozen O'Connor
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Kentucky AG Russell Coleman filed a lawsuit against Character Technologies, Inc. and its founders alleging violations of the state's consumer protection and data privacy laws arising...

United StatesTechnology
Cozen O'Connor
Cozen O'Connor

Source: The State AG Report

State: Kentucky

Industry: Technology

Area of Law: Artificial Intelligence, Consumer Protection

  • Kentucky AG Russell Coleman filed a lawsuit against Character Technologies, Inc. and its founders alleging violations of the state's consumer protection and data privacy laws arising from the operation and marketing of the Character.AI chatbot platform.
  • According to the complaint, Character.AI operates a platform designed mimic human conversation through chatbots modeled on real and fictional characters, including celebrities and popular children's fictional characters. The complaint alleges that the platform exposes children to sexual content, violence, substance abuse, and self-harm. It further alleges that Character Technologies failed to implement effective age verification, parental controls, and content filters; misled parents about the risks; and unlawfully collected and processed children's data without verifiable parental

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