Judge Urges Character Technologies to Hire Privacy Ombudsman

US Bankruptcy Judge Brendan Shannon strongly encouraged Character Technologies to hire a privacy ombudsman to evaluate whether its artificial intelligence platform is harmful to children. The recommendation follows plans by Character Technologies to license its technology to The Walt Disney Company.

Judge Shannon noted that an expert assessment of customer privacy concerns could help the company alleviate objections from several state attorneys general. These officials have already launched lawsuits and investigations into the platform's privacy practices. While the judge declined to formally order the appointment of an ombudsman, he suggested the move as a strategic way for the company to address ongoing legal and regulatory scrutiny.