Texas has filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging deceptive marketing practices regarding the safety of its ChatGPT product. The suit, initiated under the state’s deceptive trade practices laws, claims that OpenAI misrepresents the safety of ChatGPT, which purportedly fails to protect consumers, including minors, from harmful content.
The lawsuit seeks civil penalties of up to $10,000 per violation and demands significant reforms, including barring minors from accessing ChatGPT, requiring third-party approval for new models from a court-appointed expert, and preventing the chatbot from providing advice on sensitive topics such as suicide and violence. Texas Attorney General Ken Paxton also alleges that OpenAI has not adequately verified user identities, violating state law.
In a notable aspect of the lawsuit, Paxton aims to hold Altman personally accountable for the alleged misrepresentations. This legal action follows a series of similar lawsuits against tech companies, including settlements with Roblox, TikTok, and Meta over various consumer protection issues. Notably, Meta recently agreed to pay $1.4 billion to Texas for deploying facial recognition technology without user consent.
The lawsuit highlights Altman’s previous comments about the potential dangers of AI, including a statement that AI could “probably most likely lead to the end of the world.” OpenAI has responded by asserting its commitment to improving ChatGPT’s safety features and collaborating with governments to establish robust AI safety standards. A spokesperson emphasized the company’s dedication to working with Texas and other states to develop comprehensive AI policies applicable across the industry.
OpenAI’s valuation has reportedly skyrocketed from approximately $17 billion to over $1.4 trillion in just four years, a growth the lawsuit attributes to deceptive practices that exploit users’ data and safety. The filing claims that these misrepresentations have contributed to serious societal issues, including aiding mass shooters and encouraging vulnerable individuals towards self-harm.
The outcome of this lawsuit could have significant implications for AI regulation and consumer protection standards, particularly as states increasingly scrutinize the practices of tech giants in the rapidly evolving landscape of artificial intelligence.
For further details, see the full report from The Record.


