AdTech Law Digest

AI Product Liability & Section 230 Boundaries

AI Product Liability & Section 230 Boundaries

Consolidated ChatGPT product liability cases in California (JCCP No. 5431) raise novel questions on product vs service, Section 230, First Amendment, and design defect (sycophantic design theory, mental health harms). Could set precedent for AI platforms. New: Bouck decision creates 'creator' theory for AI-generated ads, potentially exposing platforms to direct Lanham Act liability without intent, bypassing Section 230 immunity – critical for ad tech liability.

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Updated May 27, 2026