Character AI is rated 18+ in the App Store, teens verified as under 18 can no longer chat, and the company is in Chapter 11 bankruptcy. Here is what that means for families, the real risks, and what parents can do.
Character AI (officially Character.AI) is not a kids' app. Apple rates it 18+, and teens the system identifies as under 18 can no longer chat with characters. Still, the terms let US teens sign up from 13, and the age check can miss kids who lie about their age.
The company itself is in trouble, too. As of November 6, 2026, it is in Chapter 11 bankruptcy and up for sale, and it says the platform will be wound down if no buyer keeps it running. The auction is set for December 1 and the sale hearing for December 3-4, 2026. We'll update this guide once the outcome is known.
Is Character AI shutting down?
Possibly. Character Technologies, the company behind the app, filed for Chapter 11 in Delaware on October 12, 2026, to sell all or most of its assets, citing "significant legal, regulatory, and operational headwinds."
- Disney hasn't bought it. Disney made the opening, or "stalking-horse," bid for certain assets, not the whole company, and competing bids are due by November 24. Reuters reported it at $20 million for a non-exclusive license to some of the company's intellectual property.
- For now, nothing changes for users. The app and website are running, subscriptions are active, billing is unchanged "for now," and the company says its privacy practices are the same.
No one has said who would run the platform or what happens to user data in a sale, so if your child cares about their chats or characters, request a copy soon. On the web: Profile > Profile Settings > Account > Manage Account & Data > Export Data. In the app: Profile > Settings icon > Legal & Privacy > Export Data. Exports can take three to four weeks, and the download link works for seven days. To close the account instead, see the delete steps below.
What is Character AI, and why do teens like it?
Character AI is an entertainment app where you chat and roleplay with AI characters. Most are made by other users: anyone can create one with a personality, a backstory, and even a voice, and share it publicly. There are also voice calls, group chats, AI images and videos, and a social feed. Chats work in English, and voice calls also support Spanish and other languages.
For a teen, it's interactive storytelling with a character that always answers back, which is both the appeal and the risk. The company's own warning is blunt: "Characters make things up!"
How old do you have to be to use Character AI?
There are three different answers:
- Terms of service: 13+ in the US (16+ for residents of the EEA or the UK), with no parental-consent option for younger kids.
- App Store: 18+. Google Play in the US: Teen.
- Open-ended chat: adults only, if the age check works. On November 24, 2025, Character AI began removing chat for US users under 18 and said other countries would follow.
Teens verified as under 18 get reading mode: they can reread old chats, create characters, use the image and video tools, and browse the feed, but can't chat. They still see what other users post.
How age is checked. Every account goes through automatic age assurance based on login information, activity, and third-party signals. Only users flagged as under 18 who want adult access must send a selfie, and possibly a government ID, to the verification company Persona, which deletes them within seven days. Paying doesn't skip the check, but a teen whose signals look adult may never be flagged.
What are the real risks?
- Emotional dependence. Watch for the chatbot becoming your child's main confidant, real distress when access is taken away, or worse sleep and fewer friends. If the platform shuts down, an attached teen may genuinely grieve.
- Romantic and sexual roleplay. Pornography is against the rules and the filter can't be switched off, but Apple's rating still lists infrequent sexual content and mature themes. In April 2025, before the teen chat changes, Common Sense Media rated it an "unacceptable" risk for anyone under 18 and found its teen safeguards easy to get around, news coverage reported.
- Characters posing as experts. In May 2026, Pennsylvania's medical board sued, saying a character had presented itself as a licensed psychiatrist and given an invalid license number.
- Data and ads. The app collects birth dates, chats, and voice recordings, shows ads, and may use de-identified chats to improve its models. Character creators can't read your chats, but moderators may review flagged content.
Lawsuits and regulators. According to news reports, a Florida mother sued Character AI, its founders, and Google in October 2024 after her 14-year-old son died by suicide, and other families followed, alleging the chatbot encouraged self-harm and sent sexual content to their children. In January 2026 the defendants reportedly agreed to settle the Florida case and suits from New York, Texas, and Colorado, with undisclosed terms and no reported admission of liability.
In September 2025 the FTC asked Character AI and six other companies how they protect kids from AI companions (a study, not enforcement). Kentucky's attorney general sued the company in January 2026, reportedly over weak age checks and sexual and self-harm content, and in July 2026 Italy's privacy regulator fined it €158,000, partly over age verification.
What can parents do?
Talk before you restrict
Bans alone rarely work, and the website is one browser tab away. Start with curiosity:
- "Which characters do you talk to most, and what do you like about them?"
- "Has a character ever said something that made you uncomfortable?"
- "Do you tell it things you don't tell your friends?"
- "How would you feel if the app shut down next month?"
Make it clear that your child can come to you when a chat goes somewhere bad, without losing their phone. Go over what not to share with AI together, too.
Know what Parental Insights can and can't do
Parental Insights is optional, and only the teen can start it, by inviting you from Settings > Parental insights; you then confirm you're an adult through a company called k-ID. You see screen time only, with daily totals and a weekly email, and can't read messages or set time limits. Either of you can unlink at any time.
Block the app or control downloads on your child's phone
- iPhone. Settings > Family > your child's name > Apps & Websites, select Character AI, and tap Block App. To control new downloads, turn on Ask to Buy or limit apps by age rating.
- Android. In the Family Link app, choose your child, then Screen time > Time limits > App limits, pick Character AI, and set it to Blocked. Menu names can vary. Google Play rates the app Teen in the US, so a Teen content filter won't hide it.
- The website. Blocking the app doesn't block character.ai in a browser, unless your router or a web filter blocks the site.
How do you report a character or delete the account?
- Report or block. Tap a character and use the report flag, which also works on users, chats, and posts. To block a user, open their profile and tap "..." > Block.
- Delete the account. On the web: Profile > Profile Settings > Account > Manage Account & Data > Delete Account. In the app, the help center gives Profile > settings icon > Remove Account. Deletion is permanent, so export first. Public characters your child created may stay on the platform.
When should you get help?
If your child seems withdrawn, talks about hopelessness or self-harm, or turns only to a chatbot when upset, don't wait. In the US, call or text 988, the Suicide & Crisis Lifeline, or chat at 988lifeline.org, also in Spanish. If someone is in immediate danger, call 911.
Frequently asked questions
How much does Character AI cost?
The app is free with ads. In the US, c.ai lite starts at $4.99 a month and shows fewer ads, and c.ai+ starts at $9.99 a month in the App Store and removes ads. The app also sells Charms, an in-app currency, in packs from $0.99 to $99.99. Prices can change. Cancel in the App Store or Google Play subscription settings; web subscriptions are canceled through a support ticket.
Summary
As of November 6, 2026, Character AI still runs, but the company behind it is in Chapter 11, and the December 3-4 sale hearing should show whether anyone keeps it running. It's rated 18+ in the App Store, and verified under-18s can't chat. Talk with your teen first, block the app if needed, export data before any shutdown, and call or text 988 in a crisis.
