The FTC sent OpenAI a 20-page notification that an investigation was underway and detailing its demands, as reported by The Washington Post. The document lists the Subject of Investigation as finding out if the company “engaged in unfair or deceptive privacy or data security practices” or “practices relating to risks of harm to consumers, including reputational harm.”
The Washington Post reports that one of the incidents the FTC is investigating to determine if it violated consumer protection laws is the bug in OpenAI’s system back in March that allowed some users to see each other’s data. OpenAI previously stated that only 1.2% of ChatGPT Plus subscribers were affected by this bug. Even so, The Washington Post noted that if the FTC finds that OpenAI broke consumer laws, the agency could enact a consent decree to give them control over how the company handles its data. As The Wall Street Journal also points out, this document asks OpenAI to describe how it is combating the platform from generating “statements about real individuals that are false, misleading or disparaging.”
OpenAI has yet to respond to the investigation publicly. However, some experts, such as policy coalition Chamber of Progress CEO Adam Kovacevich, remain skeptical if the FTC has jurisdiction in this area, via his statement to The Washington Post. Still, the outcome of this investigation could have a major impact on consumer AI in the future.
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