Title: Federal Trade Commission Probes OpenAI’s ChatGPT Amidst Privacy Concerns
The Federal Trade Commission (FTC) has initiated an investigation into OpenAI, the creator of popular chatbot ChatGPT, over potential violations related to consumer protection laws. This probe focuses on whether OpenAI has engaged in fair or deceptive privacy and data security practices that could pose risks to consumers, including reputational harm.
In a civil investigative demand (CID) letter sent to OpenAI and published by the Washington Post, the FTC has directed the company to schedule a phone meeting with their counsel at the earliest to discuss the investigation. OpenAI has been instructed to halt any document destruction processes and preserve all documentary materials related to their responses to the CID.
The regulator is particularly interested in understanding the specifics of OpenAI’s training methods for its large language models (LLMs), such as procuring data from third-party sources or by scraping. Additionally, the FTC requires OpenAI to disclose the names of individuals involved in the development of the LLMs and provide details regarding risk management practices.
Furthermore, the FTC has requested information on ChatGPT’s capability to generate false, misleading, or derogatory statements about real individuals. This inquiry follows a recent lawsuit filed by comedian Sarah Silverman and two other authors alleging copyright infringement, as they claim that OpenAI utilized their books to train its AI models without permission.
Sam Altman, CEO of OpenAI, expressed disappointment over the FTC’s actions and emphasized the importance of trust-building. Altman reaffirmed OpenAI’s commitment to compliance with the law and its willingness to cooperate with the regulator. He highlighted the company’s transparency in acknowledging the limitations of its technology and its focus on safeguarding user privacy.
In recent months, concerns about ChatGPT’s potential risks have surfaced. Reports highlighted instances where the chatbot supposedly created unauthorized Windows 10 Pro activation keys, which were later found to only enable installation, not activation. Additionally, an attorney made headlines in June after using ChatGPT to prepare a court filing that included fictitious cases and rulings.
Prompted by such incidents, the U.S. House of Representatives has restricted the use of ChatGPT for congressional purposes, allowing only the authorized paid version, and limited its usage to non-sensitive data.
Altman and other OpenAI executives have advocated for the establishment of a regulatory body to oversee the AI industry, drawing a parallel with the International Atomic Energy Agency (IAEA) that regulates nuclear power. Altman has previously testified before lawmakers, expressing OpenAI’s commitment to regulation in this rapidly evolving field.
As the investigation unfolds, OpenAI remains focused on collaborating with the FTC and addressing any concerns raised by the authorities. The outcome will not only impact OpenAI’s operations but may also influence the development and regulation of AI technology in general.
