Thursday, May 22, 2025

Exclusion of Religious Organization from Non-Profit Discount Challenged Under California's Unruh Act

Suit was filed yesterday in a California federal district court by a Christian non-profit claiming that OpenAI's non-profit discount policy that excludes academic, medical, religious, and governmental institutions violates plaintiff's rights under California's Unruh Civil Rights Act. The complaint (full text) in Holy Sexuality v. OpenAI, Inc., (SD CA, filed 5/21/2025), alleges in part:

1. Plaintiff Holy Sexuality is a Christian nonprofit based in Texas that uses video courses to teach young people and their families about biblical principles on human sexuality.  

2. To operate more effectively, Holy Sexuality contacted Defendant OpenAI, Inc., a San Francisco-based tech company, to receive OpenAI’s 20% nonprofit discount for a ChatGPT subscription....  

4. But OpenAI and Goodstack denied Holy Sexuality the discount because “religious … institutions are not eligible.” 

5. This categorical denial, OpenAI’s published policy, and Goodstack’s enforcement of that policy are invidious religious discrimination. And they are illegal under California’s Unruh Civil Rights Act....

6. People of faith aren’t second-class citizens in California, and tech companies cannot provide lesser services to customers simply because they are religious....

ADF issued a press release announcing the filing of the lawsuit.