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ARTICLE · 07 AUGUST 2025

Class Action Risks From New AI And Consumer Protection Laws

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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With the proliferation of new AI and consumer protection laws, much of the focus has been on state attorneys general and statutory penalties.

United StatesConsumer Protection
Peter A. Devlin
Peter A. Devlin
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With the proliferation of new AI and consumer protection laws, much of the focus has been on state attorneys general and statutory penalties. These laws, however, also present fertile ground for enterprising private plaintiffs and theories of class action liability.

Private plaintiffs have a long history of bootstrapping new laws to old causes of action, especially during times of technological change. This post considers how plaintiffs might try to use these laws, how the remedies available to such plaintiffs are uncertain, and what companies can do to prepare.

New Laws, Old Strategies

Let's start with New York's recently passed Fiscal Year 2025-26 Budget. My colleagues Hannah Taylor and Kate Patton have written about the "sweeping set of consumer protection reforms" tucked into this bill. Among these reforms are new requirements for AI companions and disclosure of so-called algorithmic pricing (using personal data to tailor prices).

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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