AI
Published 2026-10-23 New
Updated 2026-10-27
Verified 2026-10-27

Texas Attorney General Ken Paxton sues OpenAI and CEO Sam Altman under the state's Deceptive Trade Practices Act, alleging ChatGPT is marketed as safe while failing to protect Texans, including children

Texas Attorney General Ken Paxton said on 23 October 2026 that he has sued OpenAI and its affiliated entities, including CEO Sam Altman, alleging that despite marketing itself as a safe and reliable tool, OpenAI has failed to protect Texans, including children, from the harms of relying on ChatGPT.

The Attorney General's office says OpenAI misrepresented its AI products, that without adequate safeguards large language models can output inaccurate or harmful information without that risk being disclosed to users, and that the claims are brought under the Texas Deceptive Trade Practices—Consumer Protection Act.

According to The Record from Recorded Future News, the suit seeks civil penalties of up to US$10,000 per violation and injunctive relief including a requirement that OpenAI bar minors from ChatGPT, obtain approval of new models from a court-appointed expert, and stop the chatbot giving users tips on suicide, eating disorders and committing violence; The Record also reports that Paxton alleges OpenAI has long failed to verify identities in violation of state law, and that the suit seeks to hold Altman personally liable.

According to The Record, an OpenAI spokesperson said the company “works closely with experts to continually improve ChatGPT, mitigate risks and build additional safeguards”, that governments have an important role in setting robust safety standards for AI, and that it is committed to working with Texas and other states on pragmatic AI policies that apply to the entire AI industry, not just one company. These are allegations in a lawsuit and have not been tested in court.

Correction (27 Oct 2026): an earlier version said OpenAI had not responded to The Record's request for comment; The Record in fact quotes an OpenAI spokesperson, whose response is now included. (source: The Record)

Product
OpenAI ChatGPT (consumer chatbot)
Versions
n/a — state consumer-protection lawsuit
Exploited in Australia?
unknown
Patch to
Organisations deploying ChatGPT or similar chatbots to the public, especially where minors may use them, should document the safety claims they make and test that safeguards and age controls work as described; Australian businesses should check claims against Australian Consumer Law obligations on misleading conduct.

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