Federal Trade Commission Launches Deep Investigation Into OpenAI Data Practices
The FTC investigates OpenAI over potential consumer protection violations, demanding extensive records on data handling and AI hallucinations. This probe marks a significant shift in the US government's approach to regulating generative artificial intelligence.
The Federal Trade Commission investigates OpenAI for possible violations of consumer protection laws, demanding extensive records about its handling of personal data. The agency seeks detailed information on how the maker of ChatGPT obtains data to train its large language models and how it addresses the risk of generating false, misleading, or disparaging statements about real individuals.
This probe threatens to complicate OpenAI's relationship with policymakers who previously express admiration for the company's technology and its CEO, Sam Altman. In a 20-page investigative demand, the FTC asks OpenAI to provide testimony regarding public complaints, ongoing lawsuits, and a data leak from March 2023 that temporarily exposes users' chat histories and payment information.
The regulatory request also calls for descriptions of how OpenAI tests and manipulates its algorithms across different languages to mitigate risks. Furthermore, the FTC requires the company to explain the specific steps it takes to address AI "hallucinations," marking the clearest example yet of direct United States government scrutiny over the rapidly expanding generative AI industry.