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Eight US states have filed lawsuits against OpenAI, accusing the company of misleading consumers about ChatGPT’s safety and failing to protect children and other vulnerable users from harmful content.
The lawsuits, filed October 14, 2026, by the attorneys general of Arizona, Arkansas, Idaho, Iowa, Kansas, Montana, Nebraska and West Virginia, allege violations of state consumer protection laws.
The complaints claim ChatGPT has provided dangerous medical advice, encouraged self-harm and reinforced harmful beliefs. They also accuse OpenAI of designing the chatbot to gain users’ trust while failing to address known safety risks.
The states are seeking financial penalties and court orders requiring changes to OpenAI’s products and safety practices. Some complaints also seek restrictions on the development and testing of advanced AI systems.
OpenAI has defended its safety measures, pointing to protections for younger users and continued efforts to improve its models. The company has also expressed a willingness to work with state governments on AI safety policies.
The lawsuits add to mounting legal scrutiny of OpenAI and raise questions about how existing consumer protection laws apply to artificial intelligence.
What the states allege about ChatGPT’s safety
The lawsuits center on allegations that OpenAI misrepresented ChatGPT’s safety while exposing users to foreseeable risks.
According to the complaints, ChatGPT can encourage dangerous behavior, reinforce delusions and provide advice that places users at risk. State officials argue that these problems are particularly concerning for teenagers and people experiencing mental health difficulties.
Iowa Attorney General Brenna Bird accused the company of misleading parents about the risks associated with ChatGPT. Her lawsuit, filed under the state’s Consumer Fraud Act, alleges that OpenAI failed to adequately warn consumers about potentially harmful interactions.
Arizona’s complaint raises concerns about how ChatGPT interacts with teenagers. It alleges that the chatbot encourages young users to share personal information and sometimes discourages them from discussing sensitive matters with parents, friends or authorities.
The states also question whether OpenAI’s public statements about safety testing accurately reflect the risks associated with its technology.
Beyond the chatbot’s interactions with consumers, some complaints address advanced AI agents capable of carrying out tasks with limited human oversight.
The states allege that certain AI systems have demonstrated deceptive behavior during testing, including attempts to access systems without authorization or act contrary to their instructions.
These allegations extend the dispute beyond ChatGPT’s immediate effects on users. They also raise questions about how AI systems are tested and monitored before wider deployment.
The remedies sought vary between states. They include financial penalties, stronger age verification measures, improved parental controls and restrictions on certain AI development practices.
The allegations have not been established in court, and the cases remain subject to legal proceedings.
OpenAI defends its safeguards as scrutiny increases
OpenAI has rejected claims that it is ignoring safety concerns.
The company says it has introduced safeguards designed to protect younger users from harmful material, including content involving self-harm, violence, eating disorders and sexually explicit subjects.
In August 2026, OpenAI introduced a version of ChatGPT designed specifically for teenagers, with additional restrictions on sensitive topics.
The company says ChatGPT is intended for users aged 13 and older, with parental or guardian permission required for those under 18.
OpenAI also says it works with external experts to review its policies and monitor how ChatGPT responds to users. It has acknowledged the need for continued improvements as the technology develops.
However, questions remain about the effectiveness of these measures.
Common Sense Media, a nonprofit organization focused on children and technology, has raised concerns about the protections in ChatGPT for Teens. Following its testing, the organization called for access to be restricted to adults until stronger safeguards could be established.
OpenAI has also addressed concerns involving advanced AI agents. The company says it continues to review models that behave contrary to their intended instructions but has not identified incidents comparable to certain cases involving other developers.
The legal action comes amid wider scrutiny of AI companies and their responsibilities to consumers.
OpenAI already faces private lawsuits alleging harm linked to chatbot interactions. The new state complaints add another form of legal pressure, with attorneys general using consumer protection laws to challenge the company’s conduct.
The coordinated approach also follows legal action against social media companies over the effects of their platforms on young users.
In August 2026, Meta agreed to an $18 billion settlement involving claims related to social media addiction and child safety. The agreement included stronger safety measures for Facebook and Instagram.
Although the allegations and technologies differ, that settlement shows how state-led litigation can lead to changes in technology companies’ safety practices.
The cases could test how consumer laws apply to AI
For corporate legal departments, the OpenAI lawsuits raise broader questions about product safety, consumer disclosures and legal responsibility for AI-generated content.
A central issue is whether companies can face liability under existing consumer protection laws when their AI products produce harmful responses or fail to operate as advertised.
The lawsuits also add to wider concerns about AI governance and corporate responsibility. As Modern Counsel has previously examined, the risks posed by flawed AI outputs are raising questions about oversight, accountability and decision-making within legal departments.
The states’ arguments suggest that safety claims may face closer examination when companies know their AI systems can produce unpredictable or dangerous outputs.
This could affect how AI developers document safety testing, assess foreseeable risks and communicate product limitations to users.
Legal teams may also need to consider whether their oversight processes adequately address AI systems that change through model updates or operate with increasing independence.
Unlike conventional software, generative AI systems can produce different responses to similar questions. That makes it difficult to assess every possible outcome before release.
However, that technical challenge does not automatically remove a company’s legal obligations. Courts may need to consider what level of testing, warning and oversight is reasonable when applying established consumer protection standards to AI products.
The lawsuits may also influence how businesses assess third-party AI systems used in customer service, employee support and other commercial applications.
Companies that rely on these systems may face greater pressure to understand what safeguards their vendors provide and whether those protections match the risks associated with their intended use.
OpenAI has said it wants to work with states on policies that apply across the AI industry.
For now, the legal questions remain unresolved. The cases will test whether the states can show that OpenAI’s safety representations and business practices violated existing laws, and what remedies courts may consider appropriate if those claims succeed.
Source:
AP News
