---
title: "Nessel Seeks Character.AI Privacy Rules From Lansing"
url: https://www.herelansing.com/2026/10/16/nessel-character-ai-bankruptcy-consumer-protections/
date: 2026-10-16T06:51:39-04:00
modified: 2026-10-16T06:51:39-04:00
author: "Amara Escobar"
categories: ["Politics"]
site: "HERE Lansing"
attribution: "HERE Lansing"
---

# Nessel Seeks Character.AI Privacy Rules From Lansing

> LANSING, Mich. — From her Lansing office Thursday, Attorney General Dana Nessel said Michigan has lined up with other states inside Character Technologies’ bankruptcy so any sale of the Character.AI chatbot keeps privacy and youth protections intact. The court notice stresses that the firm holds intimate chat logs about mental health, relationships and emotional struggles

*Source: [HERE Lansing](https://www.herelansing.com/2026/10/16/nessel-character-ai-bankruptcy-consumer-protections/) — October 16, 2026 by Amara Escobar*

LANSING, Mich. — From her Lansing office Thursday, Attorney General Dana Nessel said Michigan has lined up with other states inside Character Technologies’ bankruptcy so any sale of the Character.AI chatbot keeps privacy and youth protections intact.

The court notice stresses that the firm holds intimate chat logs about mental health, relationships and emotional struggles for children and adults. Personas range from celebrities and cartoons to bots that pose as counselors or physicians.

Probes started after a 2024 wrongful-death case alleged a chatbot amplified a child’s suicidal thoughts. State investigators say they found possible privacy and consumer-protection problems along the way.

Nessel said optional safety promises can vanish under a new owner. The coalition wants sale terms that keep those conversations confidential and preserve limits meant to protect minors.

Her office notes Character.AI has recently tightened some access for younger users, but the states want those limits baked into any court-approved transfer of the company or its assets.