U.S. FTC opens investigation into OpenAI over misleading statements: Report
The Hindu
The U.S. FTC opened an investigation into OpenAI on claims it has run afoul of consumer protection laws.
The U.S. Federal Trade Commission has opened an investigation into OpenAI on claims it has run afoul of consumer protection laws by putting personal reputations and data at risk, the strongest regulatory threat to the Microsoft-backed startup yet.
The FTC this week sent a 20-page demand for records about how OpenAI - the maker of generative artificial intelligence chatbot ChatGPT - addresses risks tied to its AI models.
The agency is probing if OpenAI engaged in unfair practices that resulted in "reputational harm" to consumers.
The investigation marks another high-profile effort to rein in technology companies by the FTC's progressive chair, Lina Khan, days after the agency suffered a big loss in court in its fight to stop Microsoft from buying Activision Blizzard . The FTC has said that it will appeal the court decision.
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According to the FTC's demand for information sent to OpenAI, one of the questions has to do with steps OpenAI has taken to address its products' potential to "generate statements about real individuals that are false, misleading, or disparaging."
The Washington Post was the first to report the probe. The FTC declined comment, while OpenAI did not immediately respond to a request for comment.
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