Character.AI is an AI companion-chat app operated by Character Technologies, Inc., a private, VC-backed company headquartered in Menlo Park, CA. Its own privacy policy discloses collection of identifiers, demographic and financial information, full chat content, and voice recordings, and states this data (along with cookies and tracking technologies operated with third-party advertising and analytics providers) can be disclosed to advertising and analytics providers for tailored advertising. The Apple App Store privacy label independently confirms Location, Contact Info, Identifiers, and Usage Data are used to track users across other companies' apps, and that data linked to identity is used for Third-Party Advertising. No FTC or state-AG enforcement order was found, but the FTC issued Character Technologies, Inc. a 6(b) compulsory study order in September 2025 alongside Alphabet, Meta, OpenAI, Snap, and X.AI regarding the impact of companion chatbots on children and teens — a study, not an enforcement action. Ownership transparency is limited to the entity name and mailing address self-disclosed in the privacy policy; no parent/investor chain (e.g., the 2024 Google licensing and talent deal) was found on a primary company page within the fetch budget.
TRACK RECORD
1 ENFORCEMENT ACTION
[2025-09-11]
The FTC's September 11, 2025 press release states it issued 6(b) orders to seven companies operating consumer-facing AI chatbots, naming Character Technologies, Inc. among the recipients (alongside Alphabet, Instagram, Meta Platforms, OpenAI OpCo, Snap, and X.AI), to study the impact of AI chatbots acting as companions on children and teens; this is a compulsory study under the FTC's information-gathering authority, not a law-enforcement action.
The Apple App Store privacy label for Character.AI's app states that data linked to the user's identity may be used for Third-Party Advertising purposes.
Character.AI's privacy policy states that information provided directly by users includes identifiers, demographic information, financial information, commercial information, user content such as chat communications, and voice data including recordings of a user's voice from optional voice features.
Character.AI's privacy policy self-identifies the operating entity as Character Technologies, Inc., 'and its affiliates,' doing business as "Character.AI," with a Menlo Park, CA mailing address listed in the contact section; no parent-company or investor chain is disclosed on this page.
Character.AI's privacy policy states it may disclose personal information to advertising and analytics providers in connection with providing tailored advertising and monitoring ad performance across the internet, in addition to disclosures to affiliates, vendors/service providers, and in business transfers such as a merger or acquisition.
The FTC's September 11, 2025 press release states it issued 6(b) orders to seven companies operating consumer-facing AI chatbots, naming Character Technologies, Inc. among the recipients (alongside Alphabet, Instagram, Meta Platforms, OpenAI OpCo, Snap, and X.AI), to study the impact of AI chatbots acting as companions on children and teens; this is a compulsory study under the FTC's information-gathering authority, not a law-enforcement action.
The Apple App Store privacy label for Character.AI's app states that Location, Contact Info, Identifiers, and Usage Data may be used to track the user across apps and websites owned by other companies.
Character.AI's privacy policy states that it and its third-party providers, which include advertising and analytics providers, use cookies, web beacons, and other tracking technologies to collect information about a user's use of the Services.