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ChatGPT hit with privacy complaint over defamatory hallucinations | TechCrunch

Mar 20, 2025 - techcrunch.com
OpenAI is facing a privacy complaint in Europe, supported by the advocacy group Noyb, due to ChatGPT generating false and defamatory information about an individual, Arve Hjalmar Holmen, claiming he was convicted of child murder. This incident highlights concerns about the AI's tendency to hallucinate false information and the lack of mechanisms for individuals to correct inaccuracies, which conflicts with the European Union's General Data Protection Regulation (GDPR) that mandates personal data accuracy and rectification rights. Noyb argues that OpenAI's disclaimer about potential errors is insufficient under GDPR, which could lead to significant penalties and necessitate changes to AI products.

The complaint has been filed with Norway's data protection authority, aiming to hold OpenAI accountable for its U.S. entity's role in these issues. This follows a previous Noyb-backed complaint in Austria, now under Ireland's Data Protection Commission's review, which remains unresolved. The situation underscores the challenges regulators face in applying GDPR to AI technologies, with past interventions, like Italy's temporary ChatGPT ban, prompting OpenAI to adjust its user information disclosures. Despite updates to ChatGPT's model reducing such hallucinations, concerns persist about the retention of false information within the AI, emphasizing the need for compliance with data protection laws to prevent reputational harm.

Key takeaways:

  • OpenAI is facing a privacy complaint in Europe due to ChatGPT generating false information about individuals, which may violate GDPR requirements for data accuracy.
  • Noyb, a privacy rights advocacy group, is supporting a Norwegian individual whose reputation was damaged by ChatGPT's false claims of criminal activity.
  • The GDPR mandates that personal data must be accurate, and individuals have the right to have incorrect data rectified, which ChatGPT currently does not facilitate.
  • While OpenAI has made some changes to address these issues, such as updating the AI model to search the internet for information, concerns remain about the retention and processing of false information within the AI system.
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