US FTC Opens Investigation Into ChatGPT Maker OpenAI, Claims Firm Broke Consumer Protection Laws: Report

The reported move marks the strongest regulatory threat to the Microsoft-backed startup.

Advertisement
By Reuters | Updated: 13 July 2023 18:34 IST
Highlights
  • FTC says OpenAI put personal reputations and data at risk
  • AI is facing increased regulatory scrutiny
  • In March, OpenAI's ChatGPT was briefly taken offline in Italy

The FTC is investigating whether OpenAI engaged in unfair or deceptive practices

Photo Credit: Reuters

The US Federal Trade Commission has opened an investigation into OpenAI, the maker of ChatGPT, on claims it has run afoul of consumer protection laws by putting personal reputations and data at risk, the Washington Post reported on Thursday.

The reported move marks the strongest regulatory threat to the Microsoft-backed startup that kicked off the frenzy in generative artificial intelligence, enthralling consumers and businesses while raising concerns about its potential risks.

The FTC this week sent a 20-page demand for records about how OpenAI addresses risks related to its AI models, the Post said, citing a document. The agency is investigating whether the company engaged in unfair or deceptive practices that resulted in "reputational harm" to consumers, the newspaper added.

Advertisement

The FTC and OpenAI did not immediately respond to Reuters' requests for comment.

Advertisement

As the race to develop more powerful AI services accelerates, regulatory scrutiny is growing of the technology that could upend the way societies and businesses operate.

Global regulators are aiming to apply existing rules covering everything from copyright and data privacy to two key issues: the data fed into models and the content they produce, Reuters reported in May.

Advertisement

In the United States, Senate Majority Chuck Schumer has called for "comprehensive legislation" to advance and ensure safeguards on AI and will hold a series of forums later this year.

OpenAI had in March also run into trouble in Italy, where the regulator had ChatGPT taken offline over accusations that OpenAI violated the European Union's GDPR - a wide-ranging privacy regime enacted in 2018.

Advertisement

ChatGPT was reinstated later after the US company agreed to install age verification features and let European users block their information from being used to train the AI model.

© Thomson Reuters 2023


OnePlus Nord 3 brings some serious upgrades over its predecessor, including some flagship-grade specifications. We discuss this and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: OpenAI, ChatGPT, US FTC
Advertisement

Related Stories

Popular Mobile Brands
  1. Top OTT Releases of the Week: Kantara Chapter 1, Lokah Chapter 1, Idli Kadai, and More
  2. iQOO Neo 11 With Snapdragon 8 Elite SoC Launched: Price, Specifications
  3. Gemini 3 AI Model Will Be Released Soon, Says Google CEO Sundar Pichai
  4. Realme GT 8 Pro Will Launch in India in November With This Chipset
  5. Reliance Offers Free 18-Month Google AI Pro with Gemini, Veo to Jio Users
  6. Samsung Galaxy S26 Series Teased to Launch With These Notable Upgrades
  7. Vivo X300 Series Launching Today: Everything You Need to Know
  8. How to Claim 18 Months of Free Google AI Pro Access on the MyJio App
  9. Lava Agni 4 With Metal Design and Flat Edges Teased Ahead of Debut
  1. Bitchat Becomes Jamaica’s Go-to App as Hurricane Melissa Cripples Communication
  2. Google Maps Is Reportedly Developing a New Power Saving Mode for Navigation
  3. Take-Two CEO Says AI Won't Be 'Very Good' at Making a Game Like Grand Theft Auto
  4. Reliance Users to Get Free Google AI Pro Access for 18 Months Worth Rs. 35,100 With Gemini, Veo Features
  5. Meta’s VR Headsets and AI Glasses Cost the Company $4.4 Billion in Q3 2025
  6. iQOO Neo 11 With 7,500mAh Battery, Snapdragon 8 Elite Chip Launched: Price, Specifications
  7. Telegram Founder Pavel Durov Launches Cocoon, a Decentralised AI Project on TON
  8. Hedda (2025) Now Available for Streaming on Amazon Prime Video: What You Need to Know
  9. Samsung Galaxy S26 Series Teased to Launch With Upgraded Chipset, Camera, and AI Features
  10. Snapdragon 8 Gen 5 Chipset Key Specifications and Benchmark Scores Tipped; May Power Upcoming iQOO, Vivo Phones
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.