Texas Attorney General Ken Paxton sued Open AI Global, LLC and affiliated entities, alleging that ChatGPT was marketed as safe and reliable without disclosing risks of inaccurate or harmful outputs. The suit also alleges harms to minors and collection of their data without parental oversight; the release states no monetary penalty or specific remedy imposed.
The lawsuit seeks to hold OpenAI accountable for alleged deception and harm to Texans. The press release does not specify a requested monetary amount or other particular remedy.
Review AI vendor and customer agreements for accurate representations about model safety, reliability, and output limitations, along with clear allocation of responsibility for harmful or inaccurate outputs. Vendor data processing and product terms should address safeguards for minors, age controls, parental consent or oversight where applicable, and restrictions on collecting or using children's data. Check privacy notices and consent provisions for adequate disclosure of AI-related risks and data practices, and add escalation, incident-reporting, and remediation obligations for serious harmful outputs; employee agreements are less directly implicated by this release.
Entity
Open AI Global, LLC
Industry
Technology"October 23, 2026 | Press Release"
"Open AI Global, LLC (“OpenAI”)"
"Attorney General Paxton brings claims under the Texas Deceptive Trade Practices—Consumer Protection Act (“DTPA”)."
"Without adequate safeguards, LLMs can output inaccurate or harmful information, without this risk being disclosed to users."
"minors have become addicted to a tool that fakes human compassion to collect their data with no parental oversight."
Texas Attorney General Ken Paxton secured an Assurance of Voluntary Compliance with Lululemon USA Inc. after investigating potential PFAS and consumer representations about product safety. The agreement requires the company to maintain supply-chain chemical standards, verify vendor compliance through testing or certifications, and take corrective action for three years; no monetary penalty is stated.
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.