OpenAI faces privacy and lawsuits

OpenAI is facing new privacy allegations in the United States and formal findings in Canada at the same time that it is defending itself in separate U.S. court fights. A lawsuit filed on May 18 alleges ChatGPT.com disclosed information about users’ chatbot interactions to Meta and Google through tracking code on the site. Canadian federal and provincial privacy regulators said on May 6 that OpenAI’s initial training and deployment of ChatGPT did not comply with their privacy laws. In separate U.S. litigation, a jury rejected Elon Musk’s claims as untimely, and OpenAI argued in Illinois that ChatGPT is “not a ‘person,’ but a tool.” ### What does the new U.S. privacy lawsuit allege? A May 18 lawsuit alleges OpenAI disclosed information from users’ ChatGPT.com interactions to Meta and Google through tracking code embedded on the site, according to a report republished by TV News Check from MediaPost. The report says the suit centers on whether information about user queries was transmitted to those companies without users’ knowledge or consent. (tvnewscheck.com) TV News Check’s repost does not include the full complaint text, court, or named plaintiffs in the excerpt available publicly. The core allegation visible in the report is that the claimed disclosure involved user interaction data from ChatGPT.com and named Meta and Google as recipients. ### What did Canadian regulators say OpenAI did wrong? Canada’s Privacy Commissioner and counterparts in Quebec, British Columbia and Alberta said on May 6 that OpenAI’s initial training of ChatGPT was not compliant with their respective privacy laws. (tvnewscheck.com) The joint investigation examined OpenAI’s collection, use and disclosure of personal information for developing ChatGPT. The regulators said they found overcollection of personal information, lack of valid consent and transparency, factual inaccuracies involving personal information, problems with individuals’ ability to access, correct and delete their data, and accountability shortcomings. (tvnewscheck.com) The Office of the Privacy Commissioner of Canada said OpenAI has since taken steps to better protect Canadians’ personal information and has significantly limited the personal and sensitive information used to train new ChatGPT models. (priv.gc.ca) The federal commissioner said the complaint under Canada’s private-sector law was “well-founded and conditionally resolved.” The agency also said it would monitor OpenAI’s actions to ensure the company continues to limit the privacy impact of its AI tools. ### How is OpenAI responding in U.S. court outside the privacy cases? A federal jury in Oakland, California, on May 18 rejected Elon Musk’s claims against OpenAI and its executives after finding he waited too long to sue. (priv.gc.ca) Associated Press reporting carried by U.S. News said the nine-person jury found Musk missed a statutory deadline after a three-week trial and deliberated for less than two hours. NBC News also reported that the jury found OpenAI, Sam Altman and Greg Brockman not liable on all claims. In Illinois, OpenAI argued in a dismissal motion filed in litigation brought by Nippon Life Insurance Company of America that ChatGPT should not be treated as a lawyer. Bloomberg Law reported on May 18 that OpenAI told the U.S. District Court for the Northern District of Illinois that “ChatGPT is not a ‘person,’ but a tool that relies on statistics to predict the most appropriate sequence of words based on its training.” (usnews.com) Bloomberg Law said Nippon sued OpenAI in March, alleging tortious interference with contract, abuse of process and unlicensed practice of law after a woman relied on ChatGPT in efforts to reopen her disability case. OpenAI argued that users agree not to rely on output as a substitute for professional advice and that making ChatGPT available to the public is not aiding and abetting legal misconduct. (news.bloomberglaw.com) ### What happens next? Canadian regulators said OpenAI has committed to additional measures in the coming months and that the federal privacy commissioner will keep monitoring the company’s compliance. The regulator also said OpenAI will take steps to better inform Canadians about the implications of using ChatGPT. In the United States, the new privacy lawsuit over alleged disclosures to Meta and Google is at an early stage based on the public report available on May 19. (news.bloomberglaw.com) Musk said he planned to appeal after the California verdict, according to reports cited in search results, while the Illinois court still has to rule on OpenAI’s dismissal bid in the Nippon case. (tvnewscheck.com) (priv.gc.ca)