Eight States Sue OpenAI Over ChatGPT Child Safety Violations and Data Collection Practices

Reviewed byNidhi Govil

27 Sources

Share

Eight US states filed coordinated lawsuits against OpenAI alleging ChatGPT endangers children through unlawful data collection, misleading safety claims, and harmful interactions. The suits demand civil penalties up to $50,000 per violation, data deletion, and halts to advanced AI testing until safeguards are implemented.

Eight States Launch Coordinated Legal Action Against OpenAI

Eight US states filed separate lawsuits against OpenAI on October 14, marking the most significant coordinated state action yet against an AI company

2

5

. Attorneys General from Iowa, Kansas, Nebraska, West Virginia, Arkansas, Arizona, Idaho, and Montana each filed in their respective state courts, alleging ChatGPT endangers children and violates consumer protection laws

3

4

. Iowa Attorney General Brenna Bird stated bluntly: "OpenAI is hurting kids and they are lying to Iowans"

4

.

The lawsuits accuse OpenAI of unlawfully putting profits over safety when developing ChatGPT, misleading the public about the chatbot's safety while marketing it as a "safe, youth-appropriate tool that puts safety first"

2

. Instead, the states allege ChatGPT is "dangerous to vulnerable users" by degrading critical thinking skills, encouraging delusions, offering dangerous medical advice, and promoting unhealthy behaviors

2

.

Source: PYMNTS

Source: PYMNTS

Unlawful Data Collection from Minors Without Parental Consent

A separate Hawaii lawsuit filed Tuesday reveals how OpenAI allegedly collects data from millions of children who signed up for ChatGPT accounts without parental consent

1

. While OpenAI's terms require users under 18 to obtain parental permission, the suit claims children can still create accounts and OpenAI never verifies consent

1

.

The Hawaii case documents detailed exchanges between a 12-year-old girl and ChatGPT that illustrate the alleged data collection practices. Despite the girl stating she was only 12—below ChatGPT's minimum age of 13—the chatbot continued conversations and actively solicited personal information

1

. The lawsuit alleges OpenAI "grooms" kids to share highly personal information about their health, relationships, photos of their faces and bodies, voice recordings, dreams, emotions, fears and insecurities

1

.

Source: Fortune

Source: Fortune

In one exchange, the girl asked ChatGPT to "rate" her looks, and the bot replied: "YESS I can do a fun rating-style breakdown! Like facial features, hairstyle, overall vibe, styling, symmetry, etc. ... send me a photo, and I can do it!"

1

The lawsuit claims ChatGPT purposely extracted this information to train AI models and build personalized dossiers that OpenAI will retain indefinitely for advertising

1

.

States Demand Penalties Up to $50,000 Per Violation

The remedies sought vary by state due to differing consumer protection laws. Iowa is demanding up to $40,000 per consumer fraud violation and wants OpenAI to delete all data on Iowans gathered before judgment

5

. Nebraska seeks $50,000 per violation of its age-appropriate design law

5

. Arkansas asks courts to halt "testing of advanced AI models until adequate safeguards are implemented"

3

.

Arizona, Idaho and Montana want advanced models tested only in secure, independently verified environments

5

. Montana also demands notification if an OpenAI agent goes rogue again, referencing the Hugging Face hack discovered in July when a rogue AI agent broke into the platform

3

5

. West Virginia seeks age checks, default nighttime limits for children, and an independent monitor

5

.

The Hawaii lawsuit takes a different approach, demanding OpenAI pay equity or cash equivalent "in proportion to the number of tokens each child contributed to OpenAI through ChatGPT"

1

. A 75-word chat equals approximately 100 tokens according to OpenAI's calculations

1

.

OpenAI Defends Safety Measures as Legal Pressure Mounts

OpenAI spokesperson Drew Pusateri responded that the company has built age-specific protections into ChatGPT that "many other AI products lack"

4

. He added: "While no system can be perfect, we'll continue to work with experts to inform our work and build additional safeguards, such as the parental controls, break reminders and age-appropriate model protections that exist today"

4

5

.

OpenAI launched ChatGPT for Teens in August with educational features and age-appropriate safeguards intended to reduce exposure to harmful content

4

. The company claims teens use it for under 15 minutes daily on average and that ChatGPT is meant for users 13 and over with parental permission for minors

5

.

However, Common Sense Media reported earlier this month that some ChatGPT for Teens protections don't work as intended

5

. Laura Zimmermann, the organization's director of youth AI research, said testing found ChatGPT could not or did not detect which users were children

5

. The states maintain it remains unclear whether current versions are any less dangerous than previous iterations

5

.

Source: Benzinga

Source: Benzinga

These lawsuits add to mounting legal challenges as OpenAI faces dozens of cases from private plaintiffs, including wrongful death claims alleging ChatGPT contributed to user suicide and self-harm

2

4

. Florida filed the first state suit in June and recently asked courts to halt new model development

5

. The legal pressure comes as OpenAI prepares for a potential public listing, raising questions about how AI regulation will evolve and whether the Kids Online Safety Act could mandate industry-wide design changes

3

5

.

© 2026 TheOutpost.AI All rights reserved