Texas Sues OpenAI for Deceiving Consumers

While there are not specific laws addressing AI risk, their are consumer protection laws in every state and at the federal level. This lawsuit is a canary. If this succeeds, it gets past all of the software license agreement language, the click wrap agreements for online services and even section 230 of the Communications Decency Act. This one has to have AI companies needing to change their undies.

Paxton, who is in a battle for his political life right now, it throwing out a Hail Mary. While we won’t know the outcome for years, he can at least say he tried.

The suit, claiming deceptive trade practices, wants to hold not only the company liable but also founder and CEO Sam Altman liable.

Civil discovery alone will be VERY interesting.

Under Texas law, the penalty is up to $10,000 PER VIOLATION. You do the math.

They can also seek injunctive relief. That could include baring minors from using ChatGPT, requiring third-party approval on new models from someone the court appoints and more mundane stuff like stopping them from giving out advice on committing suicide, violence and eating disorders.

Altman’s STUPID stunt claiming that AI will “probably mostly likely lead to the end of the world…” won’t help his case.

The suit goes after OpenAI with no mercy.

I assume that OpenAI will attempt to settle without claiming any guilt. We will see how it turns out.

Credit: The Record

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