Artificial intelligence: The Italian Data Protection Authority imposes a fine on Character.AI
13 july 2026
The Italian Data Protection Authority has imposed a fine of 158,000 euros on Character Technologies Inc., a US company that operates Character.AI, a generative artificial intelligence service that enables users, including minors, to create and chat with virtual characters.
During the fact-finding initiated ex officio, the Authority identified several infringements of data protection regulations, among which shortcomings in the privacy notice. Furthermore, the preparation of the data protection impact assessment (DPIA) and the appointment of the EU representative were not completed within the required period.
The Authority also identified concerns regarding safeguards for minors and age verification mechanisms.
Given the risks associated with the use of generative artificial intelligence in an entertainment service accessible to minors, the Italian Data Protection Authority – while acknowledging the measures introduced by the company during the fact-finding – has ordered further action.
In particular, Character Technologies must guarantee that age verification systems function correctly, ensure that mechanisms preventing minors whose accounts have been frozen from attempting to register again (the so-called ‘cooling-off period’) are effective, and set minors’ profiles to private mode by default.
The company must provide the Authority with details of the measures taken within 120 days of receiving the decision.
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