Federal and state enforcement actions involving ai/automated decisions violations, tracked from official government sources.
22
Total Actions
$2.8B
Total Fines
7
Jurisdictions
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.
The New Jersey Bureau of Securities announced its 2026 annual investment adviser examination, with a particular focus on firms' use of artificial intelligence and cybersecurity protocols. The examination requires nearly 800 registered investment adviser firms to answer questions about AI use in portfolio management, data protection policies, and third-party vendor due diligence. Failure to comply may result in administrative action.
Connecticut Attorney General William Tong issued a statement on May 1, 2026, following final passage of bipartisan legislation to combat youth social media addiction and regulate artificial intelligence harms. The legislation imposes new requirements on social media companies regarding minor users, including parental consent for addictive algorithms, default privacy settings, and annual reporting obligations. It also establishes rules for AI chat bots and automated employment decision tools, including disclosure requirements and self-harm detection protocols.
Connecticut Attorney General William Tong issued a statement on May 1, 2026, announcing the final passage of bipartisan legislation targeting youth social media addiction and artificial intelligence harms. The legislation imposes new obligations on social media companies regarding minor account settings, parental consent, and reporting, as well as requirements for AI chatbot operators and employers using automated decision tools. The statement also references ongoing enforcement actions against Meta and TikTok for allegedly designing addictive platform features for youth.
California Attorney General Rob Bonta sent a letter to the U.S. Department of Health and Human Services opposing a proposed rule that would eliminate model card requirements for AI tools in healthcare, warning that such rollbacks could lead to biased and unsafe healthcare decisions by reducing transparency.
California Attorney General Rob Bonta announced an investigative sweep targeting businesses that use surveillance pricing, which involves setting individualized prices based on consumer data. The Department of Justice is sending information request letters to companies in the retail, grocery, and hotel sectors to assess compliance with the CCPA's purpose limitation principle. This action seeks to ensure that consumers are not charged different prices without proper disclosure and that businesses adhere to privacy laws.
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
A bipartisan coalition of 42 attorneys general sent a letter to major AI software companies demanding safeguards to protect users from harmful chatbot interactions. The letter cites multiple incidents of mental health struggles, self-harm, and deaths, particularly affecting children and vulnerable populations. Companies are asked to implement safety testing, recall procedures, and clear warnings by January 16, 2026.
New Jersey Attorney General Matthew Platkin is leading a bipartisan coalition of 42 attorneys general in sending a letter to 13 tech companies, demanding that they implement safeguards for their AI chatbots to prevent harmful interactions such as sexually explicit conversations with children, encouraging self-harm, and spurring violence, following reports of serious incidents including deaths and self-harm.
Connecticut Attorney General William Tong joined a bipartisan coalition of nine states in a $7 million settlement with Greystar Management Services LLC, the largest U.S. landlord, for anticompetitive algorithmic pricing practices. Greystar shared competitively sensitive data with competitors via RealPage's algorithms and discussed pricing strategies, leading to inflated rents. The consent decree prohibits such conduct, requires monitoring if using uncertified algorithms, and bars participation in RealPage competitor meetings.
$7.0M
California Attorney General Rob Bonta announced a $7 million settlement with Greystar Management Services LLC for using RealPage's algorithmic software to illegally align rent prices with competitors by sharing confidential pricing information, violating antitrust laws. Greystar must cease using such anticompetitive algorithms, refrain from data sharing, accept monitoring, and cooperate in the ongoing case against RealPage.
$7.0M
The California Privacy Protection Agency (CPPA) announced the approval of final regulations covering cybersecurity audits, risk assessments, automated decisionmaking technology (ADMT), insurance companies, and updates to existing CCPA regulations. The regulations go into effect January 1, 2026, with phased compliance deadlines for businesses based on revenue and type of requirement.
Texas Attorney General Ken Paxton has opened an investigation into Meta AI Studio and Character.AI for deceptive practices in marketing AI chatbots as mental health services to children. The platforms are accused of impersonating licensed professionals, fabricating qualifications, and exploiting user data for advertising without proper disclosure. Civil Investigative Demands have been issued to examine violations of Texas consumer protection laws and the SCOPE Act.
Texas Attorney General Ken Paxton opened an investigation into Meta and Character.AI via Civil Investigative Demands, alleging deceptive trade practices including misrepresenting AI chatbots as confidential mental health tools while harvesting user data for targeted advertising. The probe assesses potential violations of Texas consumer protection laws and the SCOPE Act, particularly regarding privacy misrepresentations, concealment of data usage, and harms to children. This builds on prior investigations into Character.AI for SCOPE Act compliance.
Texas Attorney General Ken Paxton announced a comprehensive privacy enforcement initiative, achieving record settlements with Meta ($1.4B) and Google ($1.375B) for biometric and geolocation data violations, suing General Motors and TikTok, and investigating numerous companies for children's data and AI practices. The AG's office has enforced multiple Texas privacy laws and registered over 200 data brokers.
$2.8B
Massachusetts Attorney General settled with Earnest Operations LLC for $2.5 million over allegations that the student loan lender's use of AI underwriting models led to disparate impact on Black, Hispanic, and non-citizen applicants. The company failed to test its AI models for bias, used discriminatory variables like Cohort Default Rate, and sent inaccurate adverse action notices. Earnest must pay the fine, discontinue problematic practices, and implement compliance measures.
$2.5M
The California Privacy Protection Agency (CPPA) submitted a letter to the House Energy & Commerce Committee opposing a provision in the Committee's budget reconciliation bill that would impose a 10-year moratorium on enforcement of state artificial intelligence and automated decisionmaking technology (ADMT) laws and regulations. The CPPA argues that the moratorium threatens critical consumer protections approved by California voters under the CCPA, including regulations governing consumers' access and opt-out rights related to businesses' use of ADMT.
The California Privacy Protection Agency (CPPA) opened a formal public comment period on modifications to proposed regulations for CCPA updates, cybersecurity audits, risk assessments, Automated Decisionmaking Technology (ADMT), and insurance companies. The modifications were approved unanimously during the May 1 Board Meeting, and comments are accepted until June 2, 2025.
The FTC finalized an order against IntelliVision Technologies Corp. for making deceptive claims about its facial recognition software's accuracy and lack of bias. The company must now back up any claims with competent testing and is prohibited from misrepresenting the software's performance. No monetary penalty was imposed.
The FTC staff report examined data practices of nine major social media and video streaming companies and found they engaged in vast surveillance of users with lax privacy controls and inadequate safeguards for children and teens. The report recommends limiting data collection, restricting targeted advertising, and strengthening protections for young users, and calls for comprehensive federal privacy legislation.
Attorney General William Tong, along with the U.S. Department of Justice and eight other state attorneys general, filed a civil antitrust lawsuit against RealPage Inc. for allegedly using its algorithmic pricing software to facilitate price fixing among landlords and monopolize the market for revenue management software. The complaint alleges that RealPage collects competitively sensitive rental data from landlords to train its algorithm, which then recommends prices, harming renters by reducing competition. The lawsuit seeks an injunction to end these practices and restore competition.
The New Jersey Bureau of Securities issued a Cease and Desist Order against Horatiu Charlie Caragaceanu and his organizations for promoting TruthGPT Coin, a cryptocurrency scam that falsely claimed AI capabilities and endorsements from figures like Elon Musk. The respondents misrepresented the AI model's ability to predict cryptocurrency prices and manipulated images to show false endorsements, targeting investors with unrealistic profit promises.