Italy

Character Technologies Inc.

158,000 €

GDPR enforcement action by Italian Data Protection Authority (Garante) on 2026-07-03.

Rank · Sector

#96

of 374 in Media, Telecoms and Broadcasting

Rank · Italy

#70

of 595

Rank · All fines

#413

of 3,127

Case details

Authority: Italian Data Protection Authority (Garante)
Date: 2026-07-03
Controller / Processor: Character Technologies Inc.
Sector: Media, Telecoms and Broadcasting
Quoted Articles: Art. 5 (2) GDPR, Art. 12 (1) GDPR, Art. 13 (1), (2) GDPR, Art. 14 (1), (2) GDPR, Art. 24 (1) GDPR, Art. 25 (2) GDPR, Art. 27 (1) GDPR, Art. 35 (1) GDPR
Type of violation: Non-compliance with general data processing principles

Summary

The Italian DPA has imposed a fine of EUR 158,000 on Character Technologies Inc. The controller develops and deploys Character.AI, an AI-based service that allows users to interact with virtual characters. By offering this service, the controller processes personal data. However, the controller did not adequately inform users about the processing of their data, particularly with regard to the processing of data subjects' personal data in non-EU countries. Furthermore, data subjects were not adequately informed that their data could be used to pre-train AI models, which restricts their right to object. The controller also failed to carry out a data protection impact assessment in a timely manner. The controller also designated an EU representative belatedly.

Open original source Links to the regulator's original publication or another source.