Italy Fines Character.AI €158,000 for Privacy and Age-Verification Failures
Italian Data Protection Authority Penalizes U.S. AI Platform
ROME, July 9 (Reuters) - Italy's data protection authority fined Character Technologies, the U.S.-based owner of generative AI platform Character.AI, €158,000 ($180,500) for breaches of data protection rules, it said on Thursday in a statement.
Background on Character.AI and User Demographics
The service allows users, including minors, to chat with AI-generated virtual characters.
Details of Privacy Violations
Inadequate User Information
• The regulator found several privacy violations, including shortcomings in information provided to users about the processing of their personal data.
Concerns for Minors and Age Verification
• The authority also raised concerns about safeguards for minors and the effectiveness of age-verification procedures, saying further protections were needed beyond those already in place.
Company Response
• Character Technologies did not immediately respond to a request for comment.
Regulatory Actions and Broader Context
Late Compliance with EU Requirements
• The authority, known as Garante, also said the company was late in conducting a Data Protection Impact Assessment (DPIA) and appointing an EU representative.
Garante’s Proactive Stance on AI
Previous Actions Against AI Platforms
• The Garante has been one of the most proactive regulators in Europe on AI. In 2023, it briefly banned the use of OpenAI's ChatGPT chatbot over age-check and data collection issues.
Additional Information
($1 = 0.8754 euros)
(Writing by Francesca Piscioneri, editing by Alvise Armellini)
