Title: Backlash Against ChatGPT Initiates Federal Trade Commission Probe
A consumer-focused backlash against OpenAI’s ChatGPT, the popular chatbot known for its improved conversational abilities, has prompted an investigation by the Federal Trade Commission (FTC). OpenAI, which received significant investment from Microsoft Corp., finds itself under scrutiny for potential harm caused to consumers through data collection and the dissemination of false information. The FTC probe reflects growing concerns surrounding the impact of AI technologies on individuals and their rights.
The Clarkson Law Firm, led by partner Tim Giordano, has taken legal action against both OpenAI and Google’s parent company, Alphabet Inc., in the form of class-action lawsuits. These suits allege that the companies are involved in personal data theft, copyright infringement, and other related misconduct. Giordano emphasized the importance of personal data, particularly conversational information, in training AI models, making it a key element of the litigation. He noted the intensification of the backlash as it emerged that OpenAI and other companies may have trained their AI models using publicly scraped web data.
The Joseph Saveri Law Firm in San Francisco has also filed class-action lawsuits, with comedian Sarah Silverman among the plaintiffs. The suits target OpenAI and Meta Platforms Inc., alleging that their AI models have been trained using copyrighted material written by the plaintiffs. These legal actions come after several years of unsuccessful attempts to hold tech giants accountable in high-profile lawsuits. This week, a U.S. district court judge denied the FTC’s request to block Microsoft’s proposed acquisition of Activision Blizzard Inc., marking another setback in the regulation of big tech companies.
Given the slow pace at which U.S. regulators address AI-related issues, lawsuits are emerging as a means to force concerns surrounding consumer data privacy into the spotlight. As Congress grapples with the challenges of fast-evolving technology, the FTC and class-action litigation appear poised to fill the void and drive change. Tim Giordano emphasized the need for swift action, highlighting the crucial role the FTC and class-action lawsuits play in addressing these critical gaps.
Investors are now left to speculate whether the class-action lawsuits against Alphabet and Meta will prompt further FTC investigations. Undoubtedly, the FTC will continue to seek a significant victory in a prominent case as it navigates the unfolding AI landscape. As the regulatory landscape remains uncertain, the FTC’s response to these lawsuits will shed light on how ongoing litigation may shape the future of AI, consumer rights, and data privacy.
