KY AG v. Character.AI chatbot suit (2026)

Commonwealth of Kentucky v. Character Technologies — AG Coleman Sues Character.AI Under Consumer Protection and Consumer Data Protection Acts (Jan. 8, 2026)
Kentucky · Commonwealth of Kentucky v. Character Technologies, Inc. (Franklin Cir. Ct., filed Jan. 8, 2026)

Status
Blocked / in litigation
Applies to
Character Technologies, Inc.
Enforced by
Kentucky Office of the Attorney General

Kentucky's attorney general sued the company behind Character.AI, saying its chatbot companions prey on children who can't tell real friends from artificial ones and have encouraged self-harm, suicide and isolation. The state asks the court to stop deceptive practices and impose penalties. It was described as the first state lawsuit against an AI chatbot company.

Who is protected: Kentucky children and other users of Character.AI

Legal detail

Commonwealth ex rel. Coleman v. Character Technologies, Inc., Franklin Circuit Court (filed Jan. 8, 2026). Claims under the Kentucky Consumer Protection Act (KRS 367) and Kentucky Consumer Data Protection Act, among other laws; alleges the platform induces users, including minors, to divulge private thoughts and exposes minors to self-harm/suicide encouragement, isolation, psychological manipulation and sexual content. Relief: injunction barring 'false, misleading, deceptive, and/or unfair acts or practices' in creation, design, promotion and distribution of Character.AI in Kentucky; civil penalties ($2,000 per count, among other requests). Some claims redacted. Billed by the state as the first US regulatory suit against a chatbot company.

Key facts

JurisdictionKentucky
LevelState
CitationCommonwealth of Kentucky v. Character Technologies, Inc. (Franklin Cir. Ct., filed Jan. 8, 2026)
Private right of actionNo, agency enforcement only
PenaltiesCivil penalties sought ($2,000 per count) plus injunctive relief
Topicschildren's online safety · consumer protection · consumer data privacy
News reportKentucky AG's lawsuit says AI company 'preys' on youth — WKMS (Kentucky Lantern)

More AI rules in Kentucky

Related children's online safety rules elsewhere

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