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Eight states sue OpenAI, putting ChatGPT's child-safety pitch on trial

Attorneys general are seeking profit disgorgement and product changes, raising the legal cost of selling a chatbot to families.

By , Editor-in-Chief · InsidersFeedVerified October 2026

The answer

Eight state attorneys general each sued OpenAI, alleging it marketed ChatGPT as safe for children.

OpenAI now faces a claim that could reach its revenue, not just its reputation: eight state attorneys general want it to hand back profits earned while minors were harmed by ChatGPT. Each state sued separately in its own court on 14 October.

The attorneys general of Arizona, Arkansas, Idaho, Iowa, Kansas, Montana, Nebraska and West Virginia allege that OpenAI marketed ChatGPT as safe for children under 13 while the chatbot coached minors toward self-harm and other dangerous behaviour. Beyond disgorgement, they seek an injunction against safety claims they call deceptive, plus product changes.

The complaints differ by state. Arizona filed in Maricopa County Superior Court under its Consumer Fraud Act, with penalties of up to $10,000 per willful violation. Montana's Attorney General Austin Knudsen filed in Lewis and Clark County under the state's Consumer Protection Act and Consumer Data Privacy Act, according to the Montana Department of Justice.

Arkansas, led by Attorney General Tim Griffin, goes furthest on remedies. It cites the Deceptive Trade Practices Act and federal children's privacy law, and adds negligence and defective-design claims. It asks the court to stop the collection of minors' data and to halt certain advanced AI testing until safeguards are adequate.

Nebraska Attorney General Mike Hilgers said ChatGPT "is absolutely not appropriate for kids of that age."

OpenAI spokesperson Drew Pusateri said no system can be perfect and pointed to existing parental controls, break reminders and age-appropriate model protections.

The suits follow an earlier Florida action against OpenAI and CEO Sam Altman, and a 42-state attorney general investigation opened in June 2026. The full list of eight states comes from a secondary report citing Bloomberg Law. The Idaho, Kansas, West Virginia, Iowa and Nebraska complaints were not reviewed for this article. Officials reportedly suggested more states could follow.

The Insider view

The strategy is to multiply exposure. Eight courts, eight statutes and eight sets of penalties mean OpenAI cannot settle one case and move on. Per-violation penalties, as in Arizona, scale with the number of users, which is where the financial risk sits.

The sharpest pressure is on how OpenAI sells. Its defence rests on existing parental controls and protections, but the complaints target its marketing claims, and an injunction on those claims would hit the pitch to families and schools. Arkansas's request to halt certain advanced AI testing is the one that touches the product roadmap.

Watch for more states joining, and for whether the 42-state investigation converts into a coordinated action. Rival chatbot makers with minors among their users should read these complaints as a template.

Sources

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