Character.AI · Character.ai Privacy Policy · View original document ↗

Business Transfer Disclosure

Medium severity High confidence Explicitdocumentlanguage Rare · 6 of 325 platforms
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Document Record

What it is

If Character.AI is sold, merged, or undergoes another major business change, your personal data may be transferred to the new company, potentially before the transaction is complete.

This analysis describes what Character.AI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

A change in corporate ownership could result in your personal data, including chat histories and voice recordings, being transferred to and processed by a different company with different privacy practices.

Consumer impact (what this means for users)

Your personal data including chat conversations and voice recordings could be disclosed to another company as part of a merger or acquisition, potentially changing how that data is used and protected.

How other platforms handle this

Skillshare Medium

In connection with any reorganization, restructuring, merger or sale, or other transfer of assets, we will transfer information, including personal information, provided that the receiving party agrees to respect your personal information in a manner that is consistent with our Privacy Policy.

Canva Medium

If Canva is involved in a merger, acquisition, or sale of all or a portion of its assets, your information may be transferred as part of that transaction. We will notify you via email or a prominent notice on our website prior to your information becoming subject to a different privacy policy.

Meta Medium

We may access, preserve, and share information with regulators, law enforcement, or others if we believe it is reasonably necessary to: detect, prevent, and address fraud and other illegal activity; protect ourselves, you, and others, including as part of investigations; and prevent death or imminen...

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▸ View Original Clause Language DOCUMENT RECORD
"
We may disclose certain information, in connection with or during negotiations or closing of any merger, sale of company assets, financing, or acquisition of all or a portion of our business to another company.

— Excerpt from Character.AI's Character.ai Privacy Policy

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Business transfer data sharing provisions engage GDPR Article 6 lawful basis requirements for transfers to new controllers, CCPA disclosure requirements, and FTC guidelines on data transfer in M&A contexts. The FTC has previously taken action where acquired companies' data was used in ways inconsistent with original privacy representations. The policy does not specify whether users will be notified of a transfer or given the opportunity to delete data before transfer. GOVERNANCE EXPOSURE: Medium. This is a standard clause present in most consumer privacy policies, but its significance is elevated in the context of a platform holding sensitive conversational data including voice recordings and potential mental health disclosures. The absence of a user notification or consent mechanism for business transfers is common industry practice but may create GDPR compliance questions about controller change notification obligations. JURISDICTION FLAGS: GDPR imposes obligations on data controllers to inform data subjects of changes to controller identity. US-based users have fewer statutory protections for this specific scenario, though the FTC has enforcement discretion to act if a transfer results in data use that contradicts prior privacy representations. California's CCPA does not specifically restrict business transfers but requires that transferee companies honor opt-out requests. CONTRACT AND VENDOR IMPLICATIONS: In due diligence for any M&A transaction involving Character.AI, acquiring parties should assess the data inventory, user consent framework, and regulatory exposure associated with the conversational and voice data assets. Data protection impact assessments may be required under GDPR for transfers involving large volumes of sensitive data. COMPLIANCE CONSIDERATIONS: Compliance teams at acquiring companies should evaluate whether the data practices described in this policy are compatible with their own privacy frameworks before completing a transaction. Character.AI's compliance teams should assess whether GDPR controller change notification obligations would be triggered by various transaction structures.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has authority to review data transfers in M&A contexts to ensure compliance with prior privacy representations made to consumers.
    File a complaint →

Applicable regulations

CCPA/CPRA
California, USA
Connecticut Data Privacy Act Amendments
US-CT
CAN-SPAM
United States Federal
FTC Act Section 5
United States Federal
GDPR
European Union
Indiana Consumer Data Protection Act
US-IN
Kentucky Consumer Data Protection Act
US-KY
UK GDPR
United Kingdom
Universal Opt-Out Mechanism Expansion 2026
US
VPPA
United States Federal

Provision details

Document information
Document
Character.ai Privacy Policy
Entity
Character.AI
Document last updated
May 5, 2026
Tracking information
First tracked
May 8, 2026
Last verified
May 11, 2026
Record ID
CA-P-010334
Document ID
CA-D-00120
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
6ad8585d7de8834f45d45863325899d3602d6584f208eff63eb099fffa024748
Analysis generated
May 8, 2026 14:58 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Character.AI
Document: Character.ai Privacy Policy
Record ID: CA-P-010334
Captured: 2026-05-08 14:58:37 UTC
SHA-256: 6ad8585d7de8834f…
URL: https://conductatlas.com/platform/characterai/characterai-privacy-policy/business-transfer-disclosure/
Accessed: May 13, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

Other risks in this policy

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Frequently Asked Questions

What does Character.AI's Business Transfer Disclosure clause do?

A change in corporate ownership could result in your personal data, including chat histories and voice recordings, being transferred to and processed by a different company with different privacy practices.

How does this clause affect you?

Your personal data including chat conversations and voice recordings could be disclosed to another company as part of a merger or acquisition, potentially changing how that data is used and protected.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 6 platforms. See the full comparison.

Is ConductAtlas affiliated with Character.AI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Character.AI.