Texas Attorney General Ken Paxton settled with Pieces Technologies for making deceptive claims about the accuracy of its healthcare AI products used in Texas hospitals. The company advertised an error rate of '<1 per 100,000' which was found inaccurate. The settlement requires Pieces to accurately disclose product accuracy and ensure hospital staff understand the limitations.
Pieces Technologies must accurately disclose the accuracy metrics of its AI products and ensure that hospital staff are properly trained on the appropriate use and limitations of the products.
In-house legal teams should review vendor and customer agreements, particularly those involving AI or healthcare products, to address deceptive accuracy claims. Key clauses to examine include representations and warranties regarding product accuracy and performance metrics, disclosure obligations for error rates and limitations, compliance with healthcare regulations, indemnification provisions, and customer training requirements. Changes may be needed to specify verifiable accuracy standards, mandate explicit disclosure of model limitations, ensure hospital staff understanding through training clauses, and align warranties with actual product capabilities to prevent misleading practices.
Entity
Pieces Technologies
Industry
TechnologyOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-reaches-settlement-first-its-kind-healthcare-generative-ai-investigation
Petition for Approval of AVC Pieces File Stamped
https://www.oag.texas.gov/sites/default/files/images/press/Petition%20for%20Approval%20of%20AVC%20Pieces%20File%20Stamped.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
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$45.0M
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$13.0M
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