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. Clawdbot (Now Moltbot) Explained: What is It and Why is It Going Viral?
  2. Apple Watch Hypertension Notifications Are Now Available in These Countries
  3. Xiaomi 17, Xiaomi 17 Ultra Global Variants' RAM, Storage and Colours Leaked
  4. GoBoult Tenet With IPX5 Rating, 13mm Drivers Debuts in India at This Price
  5. QCY SP7 Bluetooth Speaker Review
  6. Samsung Galaxy A57 Leaked Renders Give Us an Early Preview of Its Design
  7. Google Pixel Owners Might Want to Avoid the Latest Update Due to This Reason
  8. Secret Stories: Roslin To Stream Soon on JioHotstar: Know Everything About Plot, Cast
  9. WhatsApp's Claims Its New Feature Can Protect Against Cyberattacks
  10. UIDAI's New Aadhaar App Lets You Easily Update Mobile Number, Address
  1. Amazon Axes 16,000 Jobs as It Pushes AI and Efficiency
  2. Google AI Plus Plan Expanded Globally as the Most Affordable Gemini Subscription
  3. Redmi Note 15 Pro Series Colourways and Memory Configurations Listed on Amazon
  4. New ALMA Images Reveal Complex Rings Left Behind by Planet Formation
  5. BSNL Bharat Connect Prepaid Plan With 365-Day Validity Launched; Telco's BSNL Superstar Premium Plan Gets Price Cut
  6. Samsung Galaxy S26 Series Listed on US FCC Database With Support for Satellite Connectivity
  7. NASA Tests Nuclear Rocket Engine Designed for Faster Deep-Space Missions
  8. Hidden in Plain Sight: New Report Reveals Dozens of Nudify Apps in Major App Stores
  9. New Aadhaar App Full Version Launched in India, Introduces Easy Mobile Number Updation, and More
  10. Redmi Turbo 5 Chipset, Display and Other Key Features Confirmed Ahead of January 29 Launch
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.