FTC Probes OpenAI for Consumer Protection Violations

San Francisco, CA – The U.S. Federal Trade Commission (FTC) has initiated an investigation into OpenAI, on allegations of violating consumer protection laws and jeopardizing personal reputations and data.

On July 13th, FTC sent OpenAI a 20-page demand for records about how the company addresses risks tied to its AI models. One of FTC's demands for OpenAI is to provide detailed information about its products’ possibility of making “false, misleading, disparaging or harmful” statements of people and the steps the company has taken to address the potential “reputational harm.”

Open AI CEO Sam Altman responded in a tweet Thursday evening, saying, “of course we will work with the FTC.” 

it is very disappointing to see the FTC's request start with a leak and does not help build trust.

that said, it’s super important to us that out technology is safe and pro-consumer, and we are confident we follow the law. of course we will work with the FTC.

— Sam Altman (@sama) July 13, 2023

The AI race has raised widespread concerns about potential risks and regulatory scrutiny of the technology. OpenAI and Meta are facing multiple lawsuits, as well as Google.