Posted by Rambler in News

Allegations of consumer protection law violations risk reputation

The Federal Trade Commission (FTC) of the United States has launched an investigation into OpenAI, the manufacturer of ChatGPT, over allegations of infringing consumer protection laws that jeopardize reputation and personal data. This move represents the strongest regulatory threat to the Microsoft-backed startup, raising concerns about potential risks of generative artificial intelligence.

The FTC has requested a detailed description from OpenAI regarding complaints related to "false, deceptive, derogatory, or harmful" statements. Among the examples mentioned is an incident in 2020 where an error was revealed, allowing users to access information from other chats and payment data of other users.

ChatGPT gained significant popularity following its public and free release last year, reaching a record of 100 million downloads within two months. The FTC is also investigating whether OpenAI engaged in unfair or deceptive practices that caused harm to consumer reputation.

Furthermore, the FTC demanded detailed information on the data used by OpenAI to train its products and how they are addressing the issue of "hallucinations," where the chatbot's responses are well-structured but incorrect. If a violation of consumer protection laws is determined, the FTC has the authority to impose fines or establish a consent decree that dictates how the company must handle data.

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