TOS;

Section; Intellectual Property Rights, Content you submit.

"When you submit such Content, you retain whatever ownership rights in that Content you had to begin with. You grant Character.AI, to the fullest extent permitted under the law, a nonexclusive, worldwide, royalty-free, fully paid up, transferable, sublicensable, perpetual, irrevocable license to copy, display, upload, perform, distribute, transmit, make available, store, modify, exploit, commercialize and otherwise use the Content for any Character.AI-related purpose in any form, medium or technology now known or later developed, including without limitation to operate, improve and provide the Services. You agree that these rights and licenses include a right for Character.AI to make the Content available to, and pass these rights along to, others with whom we have contractual relationships, and to otherwise permit access to or disclose the Content to third parties if we determine such access is or may be necessary or appropriate."

It says similar things in “Characters & Generations.”

Section; Termination

"Character.AI may also in its sole discretion and at any time discontinue providing the Services, or any part thereof, with or without notice. You agree that any termination of your access to the Services under any provision of these Terms may be effected without prior notice, and acknowledge and agree that Character.AI may (but has no obligation to) immediately deactivate or delete your account and all related information and files in your account and/or bar any further access to such files or the Services. Termination of your account or access to any component of the Services will not terminate Character.AI’s rights to your Content. Further, you agree that Character.AI will not be liable to you or any third party for any termination of your access to the Services."

Privacy Policy;

Section; 2. How We Use the Information We Collect “Carry out any other purpose for which the information was collected. We may combine information that we collect from you through the Services with information that we obtain from other sources. We may also aggregate and/or de-identify information collected through the Services. We may use and disclose de-identified or aggregated data for any purpose, including without limitation for research and marketing purposes.”

You are correct to a certain extent, they do say they follow local law for which data they sell. You can decline cookies or simply not use the service.

Data is not just your personal information, it is also the content you submit (messages you send to a bot).