AI Security · Privacy · GRC
Texas sues OpenAI over ChatGPT safety claims and child access
Texas has filed a lawsuit against OpenAI, accusing it of misleading consumers about ChatGPT's safety and seeking major reforms, fines, and restrictions on children’s access.
Ross Grant2 min read
The short version
Texas has filed a lawsuit against OpenAI, the company behind ChatGPT, saying it misled people about how safe the chatbot is. The suit claims children and other users were not properly protected from harmful content and that OpenAI collected data without proper checks. Texas wants fines and new rules for how ChatGPT is run. OpenAI says it is working to improve safety but has not addressed all the claims directly.
By the numbers
- $1.4 trillionOpenAI's reported market value surge in four yearsRecorded Future News
- $10,000maximum civil penalty per violation sought by TexasRecorded Future News
- $1.4 billionMeta's July 2024 settlement with Texas over facial recognitionRecorded Future News
What happened?
Texas has sued OpenAI and its CEO, alleging the company misled consumers about the safety of ChatGPT. The lawsuit claims that safeguards failed to protect users, including children, and seeks fines and major changes to how ChatGPT operates. OpenAI says it is working with experts to improve safety. Only one outlet has reported this so far.
Who is affected
The lawsuit targets OpenAI and its CEO, Sam Altman, over the company’s ChatGPT product. Texas alleges that consumers, including children, have been misled about the safety of ChatGPT. The suit claims that minors in Texas have been able to access and use ChatGPT without proper safeguards or parental oversight, and that the product has exposed vulnerable users to harmful content.
What was taken
The Texas Attorney General alleges that OpenAI has collected user data, including from minors, without adequate verification or parental consent. The lawsuit claims that this data collection has helped boost OpenAI’s market value, which reportedly surged from $17 billion to over $1.4 trillion in four years, according to the filing. There are also allegations that ChatGPT has provided users with advice on sensitive topics such as suicide, eating disorders, and violence.
The response
OpenAI has responded by saying it works closely with experts to improve ChatGPT and its safeguards. The company stated that it is committed to working with Texas and other states to develop practical AI safety policies that would apply across the industry, not just to OpenAI. OpenAI did not directly address the specific allegations about data collection or safety failures in its public statement, but emphasised ongoing efforts to mitigate risks.
Investigations and fines
Texas is seeking civil penalties of up to $10,000 per violation under the state’s deceptive trade practices laws. The lawsuit also asks for sweeping changes, including barring minors from using ChatGPT, requiring court-appointed third-party approval of new models, and preventing ChatGPT from giving users advice on dangerous topics. The suit is unusual in that it seeks to hold CEO Sam Altman personally liable for the alleged deception. The case follows other high-profile actions by Texas against tech companies, including a $1.4 billion settlement with Meta over facial recognition claims in July 2024.
What happens next
The lawsuit has just been filed and no court dates or deadlines have been announced. OpenAI has said it will work with Texas and other states on AI policy, but has not indicated what changes, if any, it will make in response to the lawsuit. No other states or federal agencies have announced similar actions as of now.
Claimed vs confirmed
- Unconfirmed
OpenAI misled consumers about ChatGPT's safety and safeguards failed to protect users, including children.
Alleged by Texas Attorney General in the lawsuit; OpenAI has not confirmed these claims.
- Unconfirmed
OpenAI collected data from minors without proper verification or consent.
Alleged in the lawsuit; OpenAI has not addressed this claim directly.
Why it matters
This case could set new rules for how AI companies protect users, especially children, and handle user data. It raises questions about the safety of large language models and the responsibilities of companies that develop them.
Key points
- Texas is suing OpenAI over claims of misleading safety statements about ChatGPT.
- The lawsuit seeks fines and strict new rules, including banning minors from ChatGPT.
- OpenAI is accused of collecting data from users, including children, without proper checks.
- The case could impact how AI companies handle user safety and data privacy.
- Only one news outlet has reported the lawsuit so far; details may change.
Sources
Recorded Future News
Reference




