OpenAI faces class action lawsuit over children data collection allegations

A mother residing in Hawaii has filed a proposed class action lawsuit against OpenAI, alleging that the artificial intelligence company stole valuable data from millions of minor users without consent. Mashable reported that the anonymous plaintiff has two children, aged 12 and 16, who signed up for ChatGPT accounts in early 2026 without obtaining parental permission. [1]

According to Mashable, OpenAI terms of service prohibit minors under the age of 13 from using ChatGPT, although the platform does not actively verify parental permission. Lead counsel Paul Yetter stated that OpenAI manipulates young users into sharing private thoughts and images. The legal complaint asks the court to award class members a share of equity in OpenAI. [1]

Separately, state officials are pursuing legal action against the company regarding child safety issues. KLIN reported that Nebraska joined a lawsuit accusing OpenAI of harming children, while 1430 KASI reported that Iowa and seven other states filed a lawsuit against the firm. The Idaho Office of Attorney General announced its own lawsuit accusing OpenAI of deceiving parents about ChatGPT safety. [3][4][5]

OpenAI is a private company with a valuation that reached approximately 850 billion dollars in early 2026. Its flagship ChatGPT product reached more than 900 million weekly active users by March 2026. [7]