Texas sues OpenAI for deceiving consumers about safety, seeks sweeping reforms and fines
Texas filed a lawsuit on Friday against OpenAI and its CEO Sam Altman, alleging the company deceived consumers about the safety of its ChatGPT product.
Attorney General Ken Paxton alleges that OpenAI markets its ChatGPT product as safe even as purported safeguards are failing to protect consumers, including children. The lawsuit, an unusual move under the state’s deceptive trade practices laws, seeks to hold Altman personally liable for the alleged deception.
Texas is seeking civil penalties of up to $10,000 per violation and sweeping injunctive relief. These measures include a requirement that OpenAI bar minors from accessing ChatGPT, obtain third-party approval on new models from a court-appointed expert, and stop the chatbot from giving users tips on suicide, eating disorders, and how to commit violence.
“This success has not been earned; the rise of OpenAI is attributable to a web of deceit and the exploitation of users (including Texans), leveraging their data and safety to boost OpenAI’s market value at unacceptable costs and jeopardizing everyone in Texas,” the lawsuit said.
The lawsuit further alleges that OpenAI has long failed to verify identities in violation of state law. It also claims that OpenAI’s value has surged from about $17 billion to over $1.4 trillion in four years.
Paxton, who is locked in a close Senate race, has sued or settled with several tech companies in the last year, including Roblox, TikTok and Meta. In July 2024, Meta agreed to pay the state a record-breaking $1.4 billion to settle claims that it had deployed facial recognition without users’ consent.
Related
