FTC to Investigate OpenAI over alleged consumer protection violations

FTC investigates OpenAI for consumer protection breaches, with potential fines and injunctions amid the challenge of regulating advanced AI technologies.

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According to a report by the Washington Post, the US Federal Trade Commission (FTC) has initiated an investigation into OpenAI’s ChatGPT over allegations of violating consumer protection laws and jeopardising personal reputations and data. The specific concern is whether ChatGPT harms consumers through potential data security issues and the generation of false information.

The FTC has reportedly sent OpenAI a 20-page request for records concerning its approach to addressing risks associated with its AI models. At the time of this report, neither the FTC nor OpenAI have not commented on the matter.

What are the potential consequences for OpenAI?

The FTC has the authority to impose substantial fines ranging from thousands to millions of dollars based on the severity of the violation. Additionally, the FTC can seek an injunction to halt OpenAI from engaging in unfair or deceptive practices, which could potentially lead to a temporary suspension of GPT model releases until necessary safeguards are established.