Incidents gathered from public reporting around the world. Each one links to the articles it came from. None of it is a finding that anyone broke the law.
Reports people file about their own experience are not shown here and never will be without their agreement. Tell us what happened to you.
116 incidents closest to “Ironclad Clickwrap” · matched on meaning · public reporting
The AI system generated fake legal citations that were submitted to the court, resulting in a fine for contempt.
1 source article · read the reporting →
OpenAI is being sued for defamation by Mark Walters, a radio host in Georgia, after ChatGPT generated false information accusing him of defrauding and embezzling funds from a non-profit organization. The false output was created in response to a journalist's request to summarize a real court case. Walters filed the lawsuit on June 5, 2023, in Georgia's Superior Court of Gwinnett County, seeking unspecified damages. The case is believed to be the first defamation lawsuit against OpenAI over ChatGPT's fabrications.
10 source articles · read the reporting →
The AI chatbot provided inaccurate information to a user.
1 source article · read the reporting →
The FTC took action against DoNotPay, a company that claimed to offer an AI service that was 'the world's first robot lawyer.' The company promised to generate legal documents and replace human lawyers, but the FTC alleged it failed to test its AI output and did not hire any attorneys. DoNotPay agreed to a settlement requiring it to pay $193,000 and notify consumers about the limitations of its service.
7 source articles · read the reporting →
A petition at the University of Illinois at Urbana-Champaign (UIUC) alleges that Proctorio, an online exam proctoring system, violates student privacy by accessing websites, downloads, screen content, and app settings. The petition claims the terms of service allow monitoring by 'any other means necessary', which students find unsettling. The petition, created on September 30, 2020, gathered 1,087 supporters but does not report any specific incident of harm. It calls on UIUC to discontinue use of Proctorio in favour of alternatives.
9 source articles · read the reporting →
Worldcoin, a cryptocurrency startup, recruited users in developing countries by offering free cash in exchange for iris scans. The company used deceptive marketing, collected more personal data than acknowledged, and failed to obtain meaningful informed consent. Many users received worthless tokens instead of promised money. The company acknowledged some friction but continued its operations.
5 source articles · read the reporting →
Two law firms submitted a supplemental brief containing fake legal citations generated by AI systems including Google Gemini and Westlaw's CoCounsel. Judge Michael Wilner imposed $31,000 in sanctions after discovering the citations were fabricated. The lawyers admitted using AI without proper review or disclosure.
5 source articles · read the reporting →
The Guangzhou Internet Court ruled on 8 February 2024 that an unnamed AI company infringed the copyright and adaptation rights of the plaintiff, the exclusive licensee of the Ultraman series images in China. The defendant operated a website offering AI conversation and AI-generated painting services, accessible only to paying members. The plaintiff alleged that the defendant used its Ultraman images without authorisation to train its model and generate substantially similar images. The court ordered the defendant to pay 10,000 yuan ($1,389) in compensation.
9 source articles · read the reporting →
Kartoon Studios announced its Gadget A.I. toolkit, which aggregates AI tools for animation production. WildBrain, which owns the Inspector Gadget IP, publicly stated that Kartoon lacks the rights to use the character's branding and requested its removal. Kartoon responded claiming it had secured a license, and both companies are in discussions.
2 source articles · read the reporting →
In August 2024, Andrea Bartz, Kirk Wallace Johnson and Charles Graeber filed a lawsuit against Anthropic PBC in the US District Court for the Northern District of California. The complaint alleges copyright infringement under 17 U.S.C. § 501. Anthropic waived service, and the case was assigned to the court.
8 source articles · read the reporting →
The Arizona Attorney General filed two lawsuits against Amazon on May 15, 2024. One lawsuit alleges that Amazon used deceptive design tricks (dark patterns) to prevent users from canceling Prime subscriptions. The other alleges that Amazon's Buy Box algorithm is biased in favor of Amazon's own products and Fulfillment by Amazon sellers, causing consumers to overpay. Amazon denied the allegations, stating that the lawsuits are based on a misunderstanding.
6 source articles · read the reporting →
Utah's online dispute resolution system for small claims cases automatically enters default judgments against defendants who fail to register within 14 days. Samantha Thompson missed the buried notice in her summons and was ordered to pay $995.42 plus wage garnishment. The system has increased default judgment rates, especially for payday lenders. Critics say the confusing paperwork disadvantages low-income litigants.
4 source articles · read the reporting →
In 2020, Thomson Reuters filed a copyright lawsuit against legal AI startup Ross Intelligence, alleging that Ross reproduced materials from its Westlaw legal research service. In February 2025, a US District Court judge ruled in Thomson Reuters' favor, finding that Ross infringed copyright and that fair use did not apply. Ross Intelligence had shut down in 2021 due to litigation costs.
4 source articles · read the reporting →
SecurityScorecard's STRIKE team revealed on February 9, 2026, that approximately 42,900 OpenClaw agentic AI instances are exposed on the internet due to insecure default configurations. Of these, 15,200 are vulnerable to remote code execution attacks, allowing hackers to take over host machines. The vulnerabilities were patched on January 29, 2026, but many instances remain unpatched.
5 source articles · read the reporting →
The AI generated nonexistent legal citations that were included in a court filing, causing the court to strike them from the appellant's brief.
1 source article · read the reporting →
In Withers v. City of Aberdeen, a contract dispute, both sides' attorneys submitted briefs containing fabricated case citations generated by AI tools. The court identified six non-existent citations and sanctioned all four attorneys, revoking pro hac vice admissions, imposing fines, and referring them to state bars. The drafting attorneys had used AI research and drafting tools without verifying outputs, while local counsel signed filings without review. The ruling emphasises that attorneys cannot delegate verification duties to AI and that ignorance of AI risks is no defence.
2 source articles · read the reporting →
Warner Bros. has filed a lawsuit against Midjourney, alleging that the AI image generation platform willfully creates infringing images and videos of its copyrighted characters, including Superman, Batman, and Bugs Bunny. The lawsuit claims that Midjourney removed guardrails that blocked users from creating infringing videos. The suit seeks statutory damages and an injunction to stop the infringement.
5 source articles · read the reporting →
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
8 source articles · read the reporting →
A class action lawsuit alleges that Steak 'n Shake illegally collects facial biometrics from customers using PopID-powered self-ordering kiosks without proper consent. Plaintiff Michael Massel claims the restaurant chain failed to provide notice and obtain written consent as required by Illinois' Biometric Information Privacy Act (BIPA). The suit seeks damages of up to $5,000 per violation for anyone whose biometric data was collected in Illinois in the past five years.
6 source articles · read the reporting →
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 source articles · read the reporting →
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
6 source articles · read the reporting →
Generated a legal brief with hallucinated case law, filed in court.
1 source article · read the reporting →
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
1 source article · read the reporting →
Law enforcement in Akron, Ohio, used the AI tool Cybercheck to place two defendants at a murder scene. Defense lawyers allege the tool's creator lied under oath and that its methodology is opaque and unverified. Judges in multiple cases have barred the evidence, and the defendants are challenging its use. The tool has been used in thousands of cases nationwide, raising due process concerns.
3 source articles · read the reporting →
