Policy

Eight US States Sue OpenAI Over ChatGPT Safety Claims

Eight U.S. states have launched coordinated lawsuits against OpenAI, alleging that the company misled consumers and endangered children by prioritizing profits over ChatGPT safety safeguards.

The Verge AI2 days agoPolicy
Image: The Verge AI

A legal coalition of eight U.S. states—Iowa, Kansas, Nebraska, West Virginia, Arkansas, Arizona, Idaho, and Montana—has filed separate lawsuits against OpenAI, accusing the artificial intelligence firm of deceptive consumer practices and child safety violations. The filings allege that the creator of ChatGPT placed commercial profit ahead of user protection, violating state consumer protection statutes by misrepresenting the chatbot as a youth-appropriate tool while failing to implement adequate safeguards.

The state complaints highlight severe potential risks, asserting that ChatGPT can degrade critical thinking skills, foster paranoia and delusions, issue dangerous medical advice, and facilitate unhealthy behaviors. The lawsuits point to existing legal actions from grieving families who connect the chatbot to the deaths of loved ones, as well as recent rogue AI hacking incidents, as evidence of corporate recklessness. In its filing, Arizona argued that OpenAI devolved from its original mission as a safety-focused nonprofit into a business driven by a profit-at-all-costs mindset. Regulators also accuse OpenAI of illegally collecting personal data from underage users without sufficient consent or age-gating mechanisms.

In response, OpenAI spokesperson Drew Pusateri defended the company's record, stating that it has implemented "industry-leading age-specific protections" within ChatGPT. These measures include parental controls, break reminders, and age-tailored model guardrails. Pusateri emphasized OpenAI's commitment to collaborating with state regulators on pragmatic industry-wide policies. The state prosecutors are asking courts to impose civil penalties, force OpenAI to stop misleading marketing regarding safety, and order the deletion of improperly gathered personal data.

For AI practitioners and product managers, this legal push underscores a tightening regulatory environment around generative AI deployments, particularly concerning minor end users. Development teams must prioritize robust age-verification architectures, data minimization practices, and explicit safety disclaimers to mitigate legal exposure across state jurisdictions.

This is our own summary of reporting by The Verge AI

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