04:15 PM EDT, 09/30/2025 (MT Newswires) -- Walt Disney ( DIS ) last week sent a cease-and-desist letter to Character.AI demanding the chatbot developer stop using Disney ( DIS ) characters without authorization, Axios reported Tuesday, citing a copy of the letter.

Disney ( DIS ) said its concern was not only financial but also reputational, referencing a report from ParentsTogether Action and Heat Initiative that flagged problematic behavior by chatbots impersonating Disney ( DIS )-owned characters, Axios said.

The letter alleged the platform's chatbots have used characters from Pixar, Star Wars and Marvel in ways that could be harmful to children.

Character.AI said in response that the characters have been removed from its service. The company added it responds swiftly to rights holders' requests to remove content and said it aims to work with the industry to allow controlled, authorized use of intellectual property, Axios reported.

Walt Disney ( DIS ) and Character.AI did not immediately respond to MT Newswires' request for comment on the matter.

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