FTC Investigating OpenAI Over Consumer Protection Concerns

OpenAI is in the FTC's crosshairs, with the agency opening an investigation to see if the company is adequately protecting consumers....
FTC Investigating OpenAI Over Consumer Protection Concerns
Written by Staff
  • OpenAI is in the FTC’s crosshairs, with the agency opening an investigation to see if the company is adequately protecting consumers.

    OpenAI is the company behind ChatGPT, the revolutionary AI chatbot that has been incorporated into Microsoft’s products at a breakneck pace. Like most generative AI models, ChatGPT is trained on vast amounts of data available on the internet, as well from people’s interaction with it, raising concerns about how effectively OpenAI is protecting consumers.

    According to The Washington Post, the FTC is opening an investigation, sending the company a 20-page demand for information and records detailing what measures it takes to protect consumer data.

    “The FTC welcomes innovation, but being innovative is not a license to be reckless,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a speech in April. “We are prepared to use all our tools, including enforcement, to challenge harmful practices in this area.”

    OpenAI has demonstrated a willingness to work with regulators, with CEO Sam Altman vocal about his own concerns regarding AI.

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