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FTC Investigating ChatGPT Creator OpenAI Over Potential Consumer Harms

Jul 14, 2023 - variety.com
The Federal Trade Commission (FTC) is investigating OpenAI, the developer of AI chatbot ChatGPT, for potential unfair or deceptive privacy or data security practices, as well as potential harm to consumers, including reputational harm. The investigation, which was first reported by the Washington Post, covers the period from June 1, 2020, until full compliance with the investigation. The FTC is seeking information on how OpenAI has worked to correct or remediate any propensity of its Large Language Model to 'hallucinate' or reveal personal information.

In response to the investigation, OpenAI CEO Sam Altman expressed disappointment over the leak of the FTC's request but affirmed the company's commitment to safety, pro-consumer technology, and legal compliance. OpenAI, which introduced the first publicly available version of ChatGPT in November 2022, is also facing legal challenges including a defamation lawsuit by a talk show host and a lawsuit alleging illegal use of copyrighted works, on which the company has not commented.

Key takeaways:

  • The FTC is investigating OpenAI, the developer of the AI chatbot ChatGPT, for potential unfair or deceptive privacy or data security practices and risks of harm to consumers.
  • The investigation was first reported by the Washington Post, and the FTC's information requests date from June 1, 2020, until the date of full compliance with the investigation.
  • OpenAI CEO Sam Altman expressed disappointment over the FTC's request starting with a leak but assured that they are committed to ensuring their technology is safe and pro-consumer, and that they follow the law.
  • OpenAI is also facing other legal challenges, including a defamation lawsuit filed by a talk show host and a lawsuit alleging illegal use of copyrighted works in their large language model.
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