The U.S. Federal Trade Commission (FTC) has launched an investigation into whether the generative artificial intelligence (AI) ChatGPT violates consumer protection laws.
On the 13th (local time), The Washington Post (WP) reported that the FTC sent a 20-page letter to OpenAI, the developer of ChatGPT, requesting information on how OpenAI addresses risks related to its AI products.
The FTC is investigating whether OpenAI has engaged in unfair or deceptive practices that harm consumers' reputations.
The FTC asked OpenAI to explain its response measures to cases where ChatGPT generated false or disparaging statements about real individuals, which led to complaints against the company. It also requested details on the data used to train ChatGPT, including the sources and methods of acquisition.
The FTC is reviewing OpenAI's information security practices to determine if they violate consumer protection laws. WP described this as the strongest regulatory threat OpenAI has faced since starting its business in the U.S. If the FTC finds that OpenAI has violated consumer protection laws, it can impose fines or order corrective actions.
However, some have questioned whether the FTC, as an antitrust and consumer protection enforcement agency, has the authority to investigate OpenAI. During a House Judiciary Committee hearing, Representative Dan Bishop (R-North Carolina) pointed out to FTC Chair Lina Khan that defamation cases are typically prosecuted under state law rather than federal law.
In response, Chair Khan stated that the FTC's law enforcement is not focused on defamation itself but that the misuse of personal information when developing AI models could constitute fraud or deception as defined under FTC law.
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