Florida Sues OpenAI and Sam Altman, Seeks Public Nuisance Ruling for ChatGPT

Lawsuit Filed in State Court

Florida initiated an 83-page, ten-count complaint against OpenAI and Sam Altman in Highlands County circuit court on June 1. The lawsuit is based solely on Florida law and names Altman personally. Among its demands, the state is seeking a court ruling that finds ChatGPT to be a public nuisance.

Jurisdictional Dispute

OpenAI removed the case to federal court on July 2, arguing that one count, which references the federal Children's Online Privacy Protection Act (COPPA), brings the entire action under federal jurisdiction. Florida moved to remand the case back to state court on July 10, calling OpenAI's removal "preposterous."

Allegations and Legal Arguments

Count IV of Florida's complaint alleges that OpenAI violates the Florida Deceptive and Unfair Trade Practices Act by collecting data from individuals under 13 without parental notice and consent, as required by the FTC's COPPA rule. Florida's complaint explicitly states it does not assert any federal cause of action. OpenAI, however, argues that this count still arises under federal law and that applying COPPA to "artificial intelligence research services is a novel question of federal law." OpenAI also cites 15 U.S.C. §6504, which designates federal court as the exclusive forum for state attorneys general enforcing COPPA.

Broader Claims

The remaining counts in Florida's complaint include negligence, gross negligence, strict liability for design defect and failure to warn, fraudulent misrepresentation, and public nuisance. The legal battle over jurisdiction has been ongoing for seven weeks without a ruling from U.S. District Judge Aileen Cannon.