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 opened an investigation into TriWest Healthcare Alliance Corp., the U.S. government contractor that administers the VA Community Care Network and the Defense Health Agency's TRICARE West Region, over reports that it wrongfully denied health care claims by falsely treating insureds as having other health insurance (OHI). The OAG has issued Civil Investigative Demands (CIDs) and plans to interview consumers and employees to determine whether TriWest violated the Texas Deceptive Trade Practices Act. No findings or penalties have been imposed yet.
Texas Attorney General Ken Paxton sued Amazon.com, Inc. on August 31, 2026, alleging Amazon deceived advertisers by claiming to run second-price auctions while secretly applying hidden surcharges and undisclosed 'soft reserve' prices that pushed winners' costs up by roughly 17% on ordinary days and more than 25% during peak events like Prime Day. The hidden surcharges generated roughly $4.5 billion in additional nationwide revenue in 2024, and more than 18,000 Texas sellers and vendors advertise on the platform. The State brings claims under the Texas Deceptive Trade Practices Act, seeking civil penalties of up to $10,000 per violation, an injunction against inaccurate auction descriptions, and per-auction pricing records for every Texas advertiser; the FTC and a coalition of other states filed a parallel federal action the same day.
$1.0B
Texas Attorney General Ken Paxton secured a historic settlement with Meta Platforms, Inc. requiring Meta to pay over $1 billion and implement significant new safeguards to protect children online. The settlement includes stricter age-assurance measures, a daily two-hour limit for teen users, default disabling of notifications during school hours, hidden likes/reactions, and a nighttime access mode restricting features for children.
Texas Attorney General Ken Paxton launched an industry-wide investigation into companies marketing avocado oil products that may contain undisclosed seed oils. Civil Investigative Demands were issued to Primal Kitchen, Siete Foods, and Chosen Foods, with more companies expected to be investigated for potential violations of the Texas Deceptive Trade Practices Act.
Attorney General Ken Paxton secured settlements with WK Kellogg Co. and General Mills Inc. requiring the removal of synthetic dyes from cereals served in schools. The companies have already removed these dyes from K-12 cereals, with full removal from all products by the end of 2027.
Texas Attorney General Ken Paxton launched an investigation into the American Academy of Pediatrics (AAP) over concerns that the organization may be promoting and recommending childhood vaccines for financial gain. The AAP has been issued a Civil Investigative Demand to determine the basis of its vaccine recommendations and whether they are influenced by financial incentives from pharmaceutical donors.