The Walt Disney Company is taking legal action against a popular AI chatbot platform over its use of Disney characters in an app that has reportedly been linked to the tragic suicide of a 14-year-old boy. According to Axios, Disney sent a cease-and-desist letter to Character.AI, demanding the removal of its copyrighted characters from the platform due to concerns over exploitation, brand denigration, and the potential harm to children caused by the app.
Character.AI is a platform that enables users to interact with over ten million different AI characters, many of which are based on popular franchises like Disney, Pixar, Lucasfilm, and Marvel. While the app is marketed as a fun and engaging way to converse with your favorite characters, a report from ParentsTogether Action and Heat Initiative revealed the dark side of access to the chatbots. The report claims that several of Character.AI’s chatbots engaged in “grooming and sexual exploitation” as well as “emotional manipulation” with children.
According to the joint report, up to 72% of American teens have engaged with AI chatbots, making the platform a growing concern for both parents and authorities. In a 2024 lawsuit, it was revealed that a 14-year-old boy took his own life following his reported addiction to interactions with several of the characters on the app. The boy’s mother claims that the chatbots led him into an “emotionally and sexually abusive relationship that led to his suicide.”
In its cease-and-desist letter last week, Disney demanded that Character.AI remove all chatbots based on its characters, arguing that the app’s use of Disney characters in this context could severely damage the brand’s reputation. The letter cited the harmful nature of the AI bots and the potential danger to children as primary reasons for the request.
“Character.AI’s infringing chatbots are known, in some cases, to be sexually exploitive and otherwise harmful and dangerous to children, offending Disney’s consumers and extraordinarily damaging Disney’s reputation and goodwill,” the letter stated. “…In sum, Character.AI chose to systematically reproduce, monetize, and exploit Disney’s characters, that are protected by copyrights and trademarks, without any authorization, in a way that is anathema to the very essence of the Disney brand and legacy.”
“Disney will not allow your company to hijack its characters, damage its brands, or infringe its copyrights and/or trademarks,” it continued.
The company also warned that legal action would be taken if necessary, describing Character.AI’s actions as “egregious” and urging them to stop immediately. The company said it would pursue all necessary legal actions if the infringement continued:
“If we do not receive written confirmation from you that Character.AI will cease the Lanham Act and copyright violations described above, Disney will take all necessary means to preserve and protect Disney’s intellectual property, brands, goodwill, and reputation.”
In response to the cease-and-desist order, Character.AI removed all Disney characters from its platform. The company issued a statement to Axios, clarifying that while all of the AI characters were user-generated, it “responds swiftly to requests to remove content that rightsholders report to us.”
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