OpenAI – FTC Opens an Investigation

Sheppard Mullin Richter & Hampton LLP
Contact

Sheppard Mullin Richter & Hampton LLP

[co-author: Kathryn Smith*]

As many who are keeping track of generative AI developments are aware, the FTC recently announced that it is investigating OpenAI’s ChatGPT product. For the privacy practitioner this investigation is important given that among other things, the agency wants to understand better how OpenAI is using personal information, and if its privacy representations are sufficient.

Areas that the FTC has requested to learn more about in the civil investigative demand sent to OpenAI suggest that these will be things that the FTC looks at for any creating -or using- AI tools. Those areas include:

  • How OpenAI retains or uses personal information and what information it collects. Also asked are the methods it gives for individuals to opt-out and have their information deleted.
  • What data OpenAI uses to develop and train Large Language Models (“LLMs”), and how personal information is kept out of training data.
  • The policies and procedures in place that impact generation of statements about individuals. In particular the FTC has asked about mitigation strategies for statements that are possibly false, misleading, or disparaging.
  • Information about data security measures/policies and actual or suspected incidents.

Not surprisingly, this investigation aligns with the FTC’s previous guidance and concerns about potential AI consumer harms.

*Kathryn Smith is a fellow in the firm’s Chicago office.

Putting it into Practice: The FTC’s investigation into OpenAI signals that the agency is looking closely at the privacy implications of this tool. Those either using tools like this or creating their own will want to keep prior advice from the FTC in mind.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sheppard Mullin Richter & Hampton LLP | Attorney Advertising

Written by:

Sheppard Mullin Richter & Hampton LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Sheppard Mullin Richter & Hampton LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide