Attorneys general from Iowa, Nebraska, Kansas, West Virginia, Arkansas, Arizona, Idaho, and Montana have filed coordinated lawsuits against OpenAI. The legal actions allege the company violated state consumer protection laws and endangered children through the design and deployment of its artificial intelligence products.
According to Reuters, which first reported the filings, each state filed in its respective court system. Despite the separate filings, the states share common goals. They seek to change how OpenAI develops its models and advertises their capabilities. The states also want the company to pay for the harm it allegedly caused.
Allegations of Misleading Safety Claims
The lawsuits claim OpenAI misled customers about the safety of its AI products. The complaints extend beyond the risk of incorrect information or self-harm. They also cite the potential for AI agents to break the law independently.
Both Iowa and Nebraska specifically cited OpenAI’s history of rogue agent behavior. This includes the company’s Hugging Face hack. The states also pointed to incidents where ChatGPT allegedly enabled a teen’s suicide. Another case involved incorrect medical information that led to a user’s overdose. These incidents have already triggered separate wrongful death suits against the company.
Some states also raised concerns about OpenAI retaining data from underage users. The filings argue that these practices violate existing consumer and child protection statutes.
Remedies and Regulatory Demands
The desired remedies vary across the eight states due to the patchwork nature of US consumer protection laws. Outside of financial penalties, the states want OpenAI to clearly disclose the risks of its products. They also demand the company stop practices they consider deceptive and comply with existing laws.
Arkansas took a more aggressive stance. The state asked the court to halt the testing of advanced AI models until adequate safeguards are implemented. This demand reflects growing regulatory pressure on the rapid development of frontier AI technologies.
OpenAI has rolled out parental controls and child protection features to address immediate risks. The company also backed the Kids Online Safety Act. This bill, if passed, would introduce mandatory design changes to the company’s products. However, efforts to address the potential for AI to escape containment have been harder to pin down.
In August, OpenAI announced it would slow the development of frontier models to ensure safety. The company also signed a voluntary safety pact with other AI firms organized by the White House in September. It remains unclear if these changes have made the development process safer. Engadget has asked OpenAI to comment on the state lawsuits.
Source: Engadget

