US Regulators Investigating OpenAI for Possible Consumer Harm Caused by ChatGPT App

OpenAI, supported by Microsoft, is currently under investigation by the US Federal Trade Commission (FTC) to assess the potential negative impact of its widely used ChatGPT app on consumers. The investigation aims to determine if the app generates false information and if OpenAI’s technology mishandles user data. OpenAI received a detailed 20-page questionnaire from the FTC, requesting information about instances where users were wrongly criticized and any measures taken by the company to prevent such occurrences in the future.

The US regulatory authority’s investigation was first reported by The Washington Post. ChatGPT, released by OpenAI last November, stunned the world when it demonstrated the power of large language models (or LLMs). It’s a form of AI known as generative AI that can decode human-like content in seconds.

Amidst the wonder of the technology’s capabilities came reports that the models could also produce offensive, false, or just plain weird content, sometimes called “hallucinations.”

FTC Chairwoman Lina Khan spoke at a congressional committee hearing on Wednesday, and while she did not mention the investigation, she told lawmakers that her agency was concerned about ChatGPT’s potentially defamatory practices.

“We’ve heard of reports of people’s sensitive information showing up in response to someone else’s query,” Khan said.

“We’ve heard of defamation, defamatory statements, completely baseless things that come out. That’s the kind of deception and fraud that we’re concerned about,” he added.

The FTC’s investigation mainly focuses on how this aspect could harm users, according to the survey, but it also examines OpenAI’s use of Personal Data in building its world-leading model.

The company’s GPT-4 is the underlying technology behind its own ChatGPT, as well as numerous other programs from companies that pay OpenAI a fee to access its model for their own use.

OpenAI CEO Sam Altman said in a tweet that he regrets leaking news of the research to the press, which “does not build trust.”

He added that “of course” OpenAI is working with the FTC and that “it’s very important to us that our technology is safe and consumer-friendly, and we’re confident that we’re in compliance with the law.”

An FTC investigation may not result in further action, and the regulator can close the case if it is satisfied with the target company’s response.

If the FTC finds illegal or unsafe practices, it will require corrective action and possibly file a lawsuit.

OpenAI and the FTC did not respond to a request for comment.