FTC investigates ChatGPT-maker OpenAI for potential harm to users. here’s what you need to know

OpenAI’s ChatGPT has become incredibly popular since its launch, making it one of the fastest growing applications ever. With so many users, questions have arisen about how user data is being collected, used and protected – and now the Federal Trade Commission (FTC) wants answers.

one in 20 page FTC document received by Washington Post, The government agency asks OpenAI to submit documents on nearly all aspects of its larger language model, with a particular focus on OpenAI’s handling of user data and ChatGPT’s output of false statements.

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According to the document, the FTC is investigating whether OpenAI engages in “unfair or deceptive privacy or data protection practices” or if it engages in “deceptive practices” that could harm consumers.

The FTC is seeking a detailed explanation of how OpenAI obtains its data, how that data is used to train models, and what processes are in place to assess risk and security.

In addition, the FTC is also asking OpenAI to disclose what steps it has taken to reduce the risk of LLM generation of “false, misleading or defamatory” statements about real persons.

These investigations follow several incidents with ChatGPT that have raised concerns and even led to lawsuits against OpenAI.

For example, on March 20 there was a data breach that exposed ChatGPT users’ conversations and payment information by customers. The breach highlighted the potential risks of using AI tools and even prompted Italy to ban ChatGPT, although the ban has since been lifted.

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Other examples include two class action lawsuits filed against OpenAI. One of the lawsuits against OpenAI claims that the AI ​​company is using “stolen data” from customers to train and develop its products.

The second lawsuit concerns ChatGPT’s ability to hallucinate and make false statements about people. In OpenAI’s first defamation case, a Georgia radio host sued OpenAI after he learned that ChatGPT was allegedly spreading misinformation about him and accused him of embezzling money.