The FTC is investigating whether ChatGPT harms consumers

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The FTC is investigating whether ChatGPT harms consumers
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The Federal Trade Commission has opened an expansive investigation into OpenAI, probing whether the maker of the popular ChatGPT bot has run afoul of consumer protection laws by putting personal reputations and data at risk.

in April, Samuel Levine, the director of the agency’s Bureau of Consumer Protection, said the agency was prepared to be “nimble” in getting ahead of emerging threats.“The FTC welcomes innovation, but being innovative is not a license to be reckless,” Levine said. “We are prepared to use all our tools, including enforcement, to challenge harmful practices in this area.”

against AI scams, using generative AI to manipulate potential customers and falsely exaggerating the capabilities of AI products. Khan also participated in a news conference with Biden administration officials“There is no AI exemption to the laws on the books,” Khan said at that event. The agency also demanded a detailed description of the data that OpenAI uses to train its products, which mimic humanlike speech by ingesting text, mostly scraped from Wikipedia, Scribd and other sites across the open web. The agency also asked OpenAI to describe how it refines its models to address their tendency to “hallucinate,”OpenAI also has to turn over details about how many people were affected by the March security incident and information about all the steps it took to respond.

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