Italian Authority Fines OpenAI $15.6 Million for Alleged GDPR Violations

OpenAI announced its intention to appeal a €15 million fine imposed by Italy's data protection agency, the Garante, for alleged violations of the EU's General Data Protection Regulation (GDPR). The agency accused OpenAI of using personal data to train ChatGPT without proper consumer notification and lacking an adequate age verification system to protect children from inappropriate content. Despite OpenAI's cooperation during the investigation, the Garante mandated a six-month awareness campaign in Italy to inform the public about data collection practices. OpenAI criticized the decision as disproportionate and expressed its commitment to collaborating with global privacy authorities.

In a related GDPR enforcement action, the Dutch Data Protection Authority fined Netflix €4.75 million for insufficient transparency regarding customer data usage. Netflix has objected to this decision. Previously, in March 2023, Italy temporarily banned ChatGPT, citing GDPR breaches, but reinstated it after OpenAI complied with regulatory demands. OpenAI highlighted its efforts to protect privacy in AI and noted that the fine significantly exceeds its revenue in Italy during the relevant period.

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OpenAI plans to appeal a 15 million euro fine imposed by Italy's data protection agency, the Garante, for alleged GDPR violations.
The Garante claims OpenAI used personal data to train ChatGPT without informing consumers and lacked an adequate age verification system.
OpenAI argues that the fine is disproportionate and undermines Italy's AI ambitions, despite their cooperation with the investigation.
In a separate GDPR-related action, the Dutch Data Protection Authority fined Netflix 4.75 million euros for insufficient transparency about personal data usage.

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Italian Authority Fines OpenAI $15.6 Million for Alleged GDPR Violations | PYMNTS.com

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