Is OpenAI Facing the Biggest Regulatory Threat?

Is OpenAI Facing the Biggest Regulatory Threat?

San Francisco, 7/14/2023

The FTC has launched an investigation into OpenAI addressing possible violations of consumer protection laws. Insiders say this is the biggest regulatory threat to OpenAI in the US to date.

They quote the FTC as saying that they are investigating the „risk of consumer harm, including reputational damage,“ from OpenAI. The agency has issued a request for information seeking records of OpenAI’s data processing and privacy practices, AI training methods, and more.

information was requested about ChatGPT’s „ability to generate statements about real people that are false, misleading or derogatory“.

OpenAI and the FTC have not made any immediate comments on the matter.

The FTC’s demands point to increasing enforcement of consumer protection laws related to AI.

OpenAI was also under international regulatory pressure, with the Italian data protection authority temporarily banning ChatGPT earlier this year.