U.S. FEDCourt order
Bankruptcy judge urges Character.AI to hire privacy expert but declines to order ombudsman
U.S. Bankruptcy Judge Brendan Shannon in Delaware declined on October 30 to order Character Technologies, operator of Character.AI, to appoint a consumer privacy ombudsman, but strongly encouraged it to hire an expert to assess privacy risks, according to Bloomberg. He approved auction procedures in which Disney opens with a $20 million bid for a technology license. The U.S. Trustee and attorneys general for 39 states and D.C. had sought an ombudsman.
Order (Quartz) → · AI Affairs
Key points
- Judge Shannon declined to appoint a consumer privacy ombudsman at the October 30 hearing in Wilmington.QuartzAI Affairs
- He said hiring an independent privacy expert would help address state attorneys general's concerns, including about minors.QuartzAI Affairs
- Attorneys general for 39 states and D.C. joined the U.S. Trustee's objection on October 29, citing about 12 million users.AI Affairs
- The judge approved bidding procedures with Disney as stalking horse at $20 million for a nonexclusive license.Quartz
- States' objections that the procedures favor Disney may be raised again when the winning bidder seeks approval.Quartz
- Character Technologies filed for Chapter 11 on October 12 and expects the sale to finish by late November or early December.QuartzAI Affairs