US Federal Trade Commission Investigates OpenAI's ChatGPT App over Concerns of False Information and Misuse of User Data

The investigation was initiated by a 20-page questionnaire in which OpenAI was asked to describe instances where users were falsely disparaged and to share any efforts made by the company to prevent such incidents from happening again.

OpenAI's ChatGPT app, which was released in November 2021, utilizes large language models (LLMs), a type of artificial intelligence known as generative AI that can produce human-like content in seconds.

The app's capabilities left many in awe, but concerns soon arose regarding the models' ability to generate offensive, false, or strange content, which was referred to as "hallucinations." FTC Chair Lina Khan mentioned the investigation during a congressional committee hearing, stating that the agency had concerns about ChatGPT's potentially libelous output.

"We've heard about reports where people's sensitive information is showing up in response to an inquiry from somebody else," Khan said.

"We've heard about libel, defamatory statements, flatly untrue things that are emerging.

That's the type of fraud and deception that we are concerned about," she added.

The investigation focuses on how ChatGPT's potentially harmful content affects users, as well as OpenAI's use of private data to develop its world-leading model.

OpenAI's GPT-4 technology forms the basis of its own ChatGPT app as well as numerous other programs used by companies that pay a fee to access its model.

An FTC probe does not necessarily lead to further action, and the regulator may close the case if it is satisfied with the target company's response.

However, if the FTC deems illegal or unsafe practices, it will demand remedial action and possibly launch a lawsuit.

OpenAI and the FTC have yet to respond to a request for comment.

(This story has not been edited by NDTV staff and is published from a syndicated feed.)