OpenAI is currently under an extensive investigation conducted by the Federal Trade Commission. The probe focuses on determining whether the company violated consumer protection laws by jeopardizing personal data. The agency issued a 20-page request for OpenAI to provide information regarding its approach to mitigating risks associated with its AI and language models. This move signifies the most significant regulatory challenge OpenAI has faced in the US so far.
FTC Requirements from OpenAI
The FTC’s requirements from OpenAI mark the initial indication of its intended enforcement measures regarding the mentioned warnings. In cases where the FTC determines that a firm violated consumer protection laws, the agency can impose fines or subject the business to a consent decree.
Also, the FTC requested that OpenAI release complaints it received regarding its products releasing untrue, misleading, or dangerous statements about individuals. This inquiry by the FTC aims to investigate if the company engaged in practices that are unfair or misleading, potentially causing damage to consumers’ reputations.
Additionally, the FTC requested from them the submission of documents about a security breach incident disclosed by the company in March. The incident involved a system bug that inadvertently exposed certain users to payment-related details and fragments of other users’ chat history. In response to the FTC’s inquiry, the CEO of OpenAI, Sam Altman, expressed via a tweet that his firm will cooperate with the FTC. Altman further stated that OpenAI prioritizes safeguarding user privacy.
The FTC has consistently issued warnings signaling its impending actions concerning AI. The FTC has specifically cautioned against AI scams, the misuse of generative AI to manipulate prospective customers.
The agency’s focus on such deceptive practices arises from numerous incidents where the chatbot generated inaccurate information that could harm individuals’ reputations. One example involves Mark Walters, a radio talk show host from Georgia, who filed a defamation lawsuit against OpenAI, alleging that the chatbot fabricated legal accusations against him.
Also, the FTC has sought comprehensive information from them regarding its products and their advertising methods. Additionally, the agency demanded insights into the policies and procedures followed by OpenAI before the public release of any new product.
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