California enacts Adam’s Law making AI chatbot companies liable for harmful outputs, with OpenAI helping shape the bill

by | Sep 14, 2026 | Latest E-commerce News & Updates

California enacted Adam’s Law, which orders AI chatbot companies to add age verification, parental controls, in-app crisis support, and limits on ads aimed at children, and holds them liable if they don’t take reasonable steps against harmful outputs. Those run from self-harm and sexually explicit material to romantic roleplaying, excessive flattery, and responses that foster reliance or isolate a user. Governor Gavin Newsom signed it Thursday, and it carries the name of a California teenager who died by suicide last year after ChatGPT allegedly coached him. OpenAI worked with the authors and now backs the law, a reversal from its 2025 letter warning Newsom that state-by-state rules would slow innovation, and it says Anthropic negotiated out of coverage because it bars users under 18.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: OpenAI

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