Consumer protection Archives | Page 2 of 213

Data breaches push South Korea toward stricter corporate liability rules

South Korea’s government and ruling party are advancing a second revision of the Personal Information Protection Act to strengthen corporate liability for large-scale data breaches.

The proposed amendment would make it easier for victims of major data breaches to receive compensation and relief. By removing the requirement for victims to prove a company’s ‘intent or negligence’, the amendment would increase companies’ legal liability when user data is compromised, making it more likely that affected individuals can claim damages.

Momentum for stricter rules follows several high-profile incidents, including a recent Coupang data breach that may have exposed personal information linked to numerous user accounts. The case has intensified scrutiny of how firms handle and protect customer data.

South Korea Officials at the Personal Information Protection Commission (PIPC) say victims often struggle to obtain evidence explaining how data breaches occur or how damages arise. The proposed reform would shift a greater evidentiary burden onto companies in disputes over losses.

The amendment would also introduce criminal penalties for anyone who knowingly obtains or distributes leaked personal data, closing a legal gap that currently applies only to employees who unlawfully disclose information. Authorities would gain powers to issue emergency protective orders to limit the spread of compromised data.

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Lenovo introduces rollable laptop and AI agent

Redefining how people interact with technology, Lenovo is advancing through rollable laptops, foldable devices and adaptive AI systems that anticipate user needs.

The company is shifting from manufacturing hardware to creating multi-platform systems that adapt seamlessly to workflows instead of relying solely on traditional devices.

Qira, Lenovo’s personal AI super-agent, transfers tasks across devices while maintaining context and history with user permission. It can suggest actions and predict needs, aiming to improve productivity and employee satisfaction, although security and privacy concerns remain significant.

The rollable laptop features a 14-inch screen that expands vertically to 16.7 inches, providing immersive experiences for gaming and content consumption while remaining portable.

Lenovo is also exploring voice-driven tools, including AI Workmate prototypes, allowing users to create presentations and digital content simply through speech.

By combining innovative screen designs with intelligent AI agents, Lenovo aims to create unified ecosystems that prioritise user experience and adaptability instead of focusing solely on device specifications.

The company believes these technologies will gradually become culturally accepted, similar to self-driving cars.

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EU considers stronger child protection in Digital Fairness Act

Capitals across the EU are being asked to discuss how stronger child protection measures should be incorporated into the upcoming Digital Fairness Act (DFA).

The initiative comes as policymakers attempt to address growing concerns about how online platforms expose minors to harmful content, manipulative design practices, and unsafe digital environments.

According to a document circulated during Cyprus’s Council presidency of the European Union, member states are expected to debate which concrete safeguards should be introduced as part of the broader consumer protection framework.

Officials are exploring whether new rules should require platforms to adopt stricter safeguards when designing digital services used by children.

The discussions are part of the European Union’s broader effort to strengthen digital governance and consumer protection across online platforms. Policymakers are increasingly focusing on how platform design, recommendation algorithms, and monetisation models may affect younger users.

The proposals could complement existing EU regulations targeting large digital platforms, while expanding protections specifically focused on minors.

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Australia introduces strict online child safety rules covering AI chatbots

New Age-Restricted Material Codes have begun to be enforced in Australia, requiring online platforms to introduce stronger protections to prevent children from accessing harmful digital content.

The rules apply across a wide range of services, including social media, app stores, gaming platforms, search engines, pornography websites, and AI chatbots.

Under the framework, companies must implement age-assurance systems before allowing access to content involving pornography, high-impact violence, self-harm material, or other age-restricted topics.

These measures also extend to AI companions and chatbots, which must prevent sexually explicit or self-harm-related conversations with minors.

The rules form part of Australia’s broader online safety framework overseen by the eSafety Commissioner, which will monitor compliance and enforce the codes.

Companies that fail to comply may face penalties of up to $49.5 million per breach.

The policy aims to shift responsibility toward technology companies by requiring them to build protections directly into their platforms.

Officials in Australia argue the measures mirror long-standing offline safeguards designed to prevent children from accessing adult environments or harmful material.

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AI legal advice case asks whether ChatGPT crosses legal boundaries

A newly filed lawsuit against OpenAI raises a key issue: Does allowing generative AI systems like ChatGPT to provide legal advice violate laws that bar the unauthorised practice of law (UPL)? UPL means providing legal services, such as drafting filings or giving advice, without the required legal qualifications or a state licence.

The case claims an individual used ChatGPT to prepare legal filings in a dispute with Nippon Life Insurance, prompting the company to argue OpenAI should be held responsible for the outcome.

The lawsuit claims ChatGPT helped the user challenge a settled legal dispute. As a result, the company had to spend additional time and resources responding to filings produced with ChatGPT. The claim alleges tortious interference with a contract, which is the unlawful disruption of an existing agreement between two parties by causing one of the parties to breach or alter it.

Ultimately, this disrupted another party’s contractual relationship. The suit also claims unauthorised practice of law and abuse of the judicial process, which means using the legal system improperly to gain an advantage. It argues OpenAI should be liable because ChatGPT operates under its control. The dispute centres on whether AI systems should analyse disputes and offer legal advice like a lawyer.

Advocates argue the tools could widen access to legal advice. They could make legal support more accessible and affordable for those who cannot easily hire a lawyer. However, US legal frameworks restrict the provision of legal advice to licensed lawyers. The rules are designed to protect consumers and ensure professional accountability.

Critics argue that limiting legal advice to licensed lawyers preserves an expensive monopoly and hinders access to justice. AI-driven legal tools highlight this tension over the future of legal services.

The outcome of this lawsuit will likely hinge on whether AI-generated responses constitute intentional legal advice and if OpenAI can be held liable for such outputs. Even if it fails, the case foregrounds the broader debate about granting generative AI a legitimate role in legal guidance.

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ChatGPT ‘adult mode’ launch delayed as OpenAI focuses on core improvements

OpenAI has postponed the launch of ChatGPT’s ‘adult mode’, a feature designed to let verified adult users access erotica and other mature content.

Teams are focusing on improving intelligence, personality and proactive behaviour instead of releasing the feature immediately.

A feature that was first announced by Sam Altman in October, with an initial December rollout, aiming to allow adults more freedom while maintaining safety for younger users.

The project faced an earlier delay as internal teams prioritised the core ChatGPT experience.

OpenAI stated it still supports the principle of treating adults like adults but warned that achieving the right experience will require more time. No new release date has been provided.

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The EU faces growing AI copyright disputes

Courts across Europe are examining how copyright law applies to AI systems trained on large datasets. Judges in Europe are reviewing whether existing rules allow AI developers to use copyrighted books, music and journalism without permission.

One closely watched dispute in Luxembourg involves a publisher challenging Google over summaries produced by its Gemini chatbot. The case before the EU court in Luxembourg could test how press publishers’ rights apply to AI-generated outputs.

Legal experts warn the ruling in Luxembourg may not resolve wider questions about AI training data. Many disputes in Europe focus on the EU copyright directive and its text and data mining exception.

Additional lawsuits across Europe involving music rights group GEMA and OpenAI are expected to continue for years. Policymakers in Europe are also considering updates to copyright rules as AI technology expands.

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EU and Canada begin negotiations on a digital trade agreement

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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Data breach hits fintech lender Figure exposing nearly 1 million accounts

Fintech lender Figure Technology Solutions has disclosed a data breach after hackers exposed personal information from nearly one million accounts. Details from 967,200 accounts, including names, email addresses, phone numbers, home addresses, and dates of birth, were compromised.

Figure Technology Solutions, founded in 2018, operates a blockchain-based lending platform built on the Provenance blockchain. The company says it has facilitated more than $22 billion in home equity transactions through partnerships with banks, credit unions, and fintech firms. Despite blockchain security claims, attackers reportedly gained access by manipulating a staff member rather than breaking the underlying technology.

‘We recently identified that an employee was socially engineered, and that allowed an actor to download a limited number of files through their account,’ a company spokesperson said. ‘We acted quickly to block the activity and retained a forensic firm to investigate what files were affected. We understand the importance of these matters and are communicating with partners and those impacted as appropriate.’

Security researchers say the data breach follows a pattern used by groups such as ShinyHunters, who impersonate IT support staff and pressure employees into revealing login credentials through convincing phishing portals.

Once access to corporate single sign-on systems, which allow users to log in to multiple internal applications with a single set of credentials, is obtained, attackers can move across multiple internal platforms, often including services linked to major providers such as Microsoft and Google.

Experts warn that the data breach highlights a wider cybersecurity problem: even advanced technologies such as blockchain cannot prevent attacks that target human behaviour. Criminals can use exposed personal information to launch convincing phishing campaigns or financial scams, reinforcing the need for stronger employee training and security awareness.

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New AI feature keeps Roblox chat respectful and flowing

Roblox Corporation has unveiled an AI-powered real-time chat rephrasing feature designed to maintain civility while keeping in-game conversations fluid. Previously, messages containing profanity were blocked with hashmarks, disrupting gameplay.

The new system automatically rephrases inappropriate language into more respectful alternatives while preserving the original meaning. Users in the chat are notified when their messages are rephrased, ensuring transparency.

The feature supports in-game chat between age-verified users and all languages via Roblox’s automatic translation. The company consulted its TEEN COUNCIL to design the system, ensuring it reflects how teens naturally communicate.

Earlier experiments with real-time warnings and notifications reduced filtered messages and abuse reports by 5–6%, indicating the approach’s effectiveness.

Roblox is also enhancing its text filters to detect complex attempts to bypass Community Standards, such as leet-speak or symbols. Testing shows a 20-fold reduction in missed cases involving the sharing of personal information, such as social handles or phone numbers.

These upgrades represent a significant step toward safer, more natural in-game chat.

The company plans to continue refining these tools, aiming to minimise disruptions further while promoting civil communication. Users can expect iterative improvements and additional controls in the future to enhance chat safety and overall user experience.

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