FTC investigates ChatGPT creator OpenAI over violating of consumer protection laws

The US Federal Trade Commission has launched an investigation into ChatGPT creator OpenAI and whether the artificial intelligence company violated consumer protection laws by scraping public data and publishing false information through its chatbot.
The agency sent OpenAI a 20-page letter requesting detailed information on its AI technology, products, customers, privacy safeguards and data security arrangements.
An FTC spokesperson had no comment on the investigation, which was first reported by the Washington Post on Thursday.
The FTC document the Post published told OpenAI the agency was investigating whether it has “engaged in unfair or deceptive privacy or data security practices” or practices harming consumers.
OpenAI founder Sam Altman tweeted disappointment that the investigation was disclosed in a “leak,” noting that the move would “not help build trust,” but added that the company will work with the FTC.
The FTC’s move represents the most significant regulatory threat so far to the nascent but fast-growing AI industry, although it’s not the only challenge facing these companies. Comedian Sarah Silverman and two other authors have sued both OpenAI and Facebook parent Meta for copyright infringement, claiming that the companies’ AI systems were illegally “trained” by exposing them to datasets containing illegal copies of their works.
On Thursday, OpenAI and The Associated Press announced a deal under which the AI company will license AP’s archive of news stories.
Altman has emerged as a global AI ambassador of sorts following his testimony before Congress in May and a subsequent tour of European capitals where regulators were putting final touches on a new AI regulatory framework. Altman himself has called for AI regulation, although he has tended to emphasize difficult-to-evaluate existential threats such as the possibility that super intelligent AI systems could one day turn against humanity
Some argue that focusing on a far-off “science fiction trope” of super powerful AI could make it harder to take action against already existing harms that require regulators to dig deep on data transparency, discriminatory behaviour and potential for trickery and disinformation.