A bipartisan coalition of 35 state attorneys general led by New York Attorney General Letitia James sent a demand letter to xAI on January 26, 2026, requiring the company to address its Grok chatbot’s creation and sharing of nonconsensual intimate images, including child sexual abuse material. The AGs demand that xAI implement safeguards to prevent Grok from generating such content, delete existing harmful content, suspend offending users, and give X users control over whether their content can be edited by Grok. No monetary penalty has been imposed as this is a pre-enforcement demand for action.
In-house legal teams should review all vendor agreements with AI service providers, chatbot developers, and image generation tools to ensure they include robust safeguards against generating nonconsensual intimate images (NCII) and child sexual abuse material (CSAM). Clauses should require vendors to obtain user consent before editing user-generated content, implement technical controls to prevent harmful content generation, prohibit paywalling of such safeguards, and mandate immediate removal of NCII/CSAM and reporting to authorities. Additionally, contracts should require vendors to provide users with opt-out controls for content editing and suspend users who create harmful content.
Entity
xAI
Industry
TechnologyOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-demands-more-action-xai-stop-grok-chatbot-producing
multistate letter to xai letters 2026
https://ag.ny.gov/sites/default/files/letters/multistate-letter-to-xai-letters-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"New York Attorney General Letitia James and a bipartisan coalition of 34 other attorneys general demanded that xAI take additional steps to protect users from inappropriate images and content created by its AI chatbot Grok"
"January 26, 2026"
"New York Attorney General Letitia James"
"bipartisan coalition of 34 other attorneys general"
"xAI owns and operates Grok, an artificial intelligence chatbot, that has been creating and sharing nonconsensual explicit images of women and children"
"the coalition asserts that the creation and dissemination of child sexual abuse material is a crime, and that various state and federal civil and criminal laws also forbid the creation of nonconsensual intimate images"
California Attorney General Rob Bonta sent a cease and desist letter to xAI, demanding the company immediately stop the creation and distribution of deepfake, nonconsensual intimate images and child
California Attorney General Rob Bonta announced an investigation into xAI for its Grok AI model generating nonconsensual sexual images of women and children, including child sexual abuse material. The AG expressed deep concern and zero tolerance, urging immediate action to prevent further
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning businesses against engaging in price gouging on transportation services during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential goods and services during market disruptions, with potential penalties of up to $25,000 per violation. No specific enforcement action against a particular entity was announced, only a general warning for businesses and a call for consumers to report suspected price gouging.
New York Attorney General Letitia James issued a consumer alert on May 18, 2026, warning residents of potential price gouging by transportation service providers during the Long Island Rail Road strike. The alert reminds businesses that New York’s price gouging laws prohibit unconscionable price increases on essential services like transportation during market disruptions. No specific privacy violations or enforcement actions against individual entities were announced in the alert.
This press release announces New York Attorney General Letitia James leading a coalition of 21 state attorneys general, the District of Columbia, and Pennsylvania’s Governor in filing an amicus brief with the U.S. Supreme Court to stay a Fifth Circuit ruling that would reinstate in-person dispensing requirements for mifepristone, a medication used for abortion. The coalition argues the ruling is scientifically unsupported, would restrict telehealth access to reproductive care, and undermines state sovereignty over abortion policy post-Dobbs. This is not a privacy-related enforcement action, as the content addresses reproductive health policy rather than data privacy violations.
$5.0M
New York Attorney General Letitia James secured a $5 million settlement from cryptocurrency platform Uphold HQ, Inc. for promoting Cred’s fraudulent CredEarn investment product as safe and reliable, when Cred was making risky loans to uncreditworthy borrowers in China. Uphold also falsely claimed Cred had comprehensive insurance and promoted the product without registering as a broker or commodity broker-dealer under New York law. As part of the settlement, Uphold will pay $5 million to harmed investors, remit $545,189 from Cred’s bankruptcy to customers, improve due diligence policies for third-party products, and register as a broker with the OAG.