ChatGPT Creator OpenAI Slammed by FTC for Violating Privacy and Public Safety Laws

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

OpenAI faces new accusations from the Federal Trade Commission (FTC) for deploying large artificial intelligence (AI) models that are biased, deceptive, disrupt privacy, and violate public safety laws.

FTC Proposes an Immediate Halt of GPT Rollouts

The nonprofit research organization Center for AI and Digital Policy (CAIDP) has officially filed a formal complaint alongside the United States Federal Trade Commission (FTC), alleging that OpenAI, the creator of the popular chatbot AI, ChatGPT violated safety laws via the release of large languaging AI models like GPT-4. 

CAIDP claims that AI models like the GPT-4 violate Section Five of the FTC regulatory act, prohibiting deceptive and unfair business practices and guidance for AI products.

The digital policy organization states that the latest iteration of the GPT model fails to meet its guidelines for AI transparency, optimal privacy, and public safety. 

The goal of the legal complaint is for FTC to investigate OpenAI’s latest rollouts of the GPT series and suspend future releases of giant language model AI that doesn’t adheres to its agency policy. 

The nonprofit researcher implores FCT and other governing bodies to scrutinize and independently review OpenAI innovations and services before they launch and are consumed by public society. 

There are also hopes that the Federal Trade Commission will create a new review structure that entails an incident reporting system and a formal policy standard for all AI Labs and their products and services.

As of this writing, FTC is yet to make an official comment. However, the Center for AI and Digital Policy president, Marc Rotenberg, had previously provided his ethical view of GPT-4 AI. 

Rotenberg was one of several AI and tech professors, experts, and researchers who signed an open letter calling for a six-month halt to Open AI and other labs.

Tesla CEO Elon Musk and Steve Wozniak, the co-founder of Apple, also signed the letter. 

Aside from the scrutiny of GPT-4, Google has allegedly been shamed for developing a new AL chatbot called “Bard” to compete with Open AL technology tool rollouts.

There’ve also been rumors that Bard has been trained using ChatGPT responses, but Google executives have denied these allegations. 

Critics of OpenAI’s GPT-4, Google Bard, and similar models have predicted a problematic output set to rise if there is no regulation on this development. 

These problematic output range from hate speech, misinformation, bias, and violation of public privacy. 

The Center for AI and Digital Policy (CAIDP) points out that Open AI is aware that its new models can reinforce ideas regardless of how inaccurate they may be. 

While AI is generally supposed to guide humanity in solving complexities and simplifying day-to-day activities, users may rely on upgrades like GPT-4 without fact-checking content. 

Several reputable world organizations are rolling out to share their opinions on the fast-rising developments of AIs. One such is the United Nations Educational, Scientific and Cultural Organization (UNESCO.)

UNESCO announced its dissatisfaction with the rise of large AI models. The organization has called on countries to implement recommendations on the ethics of the AI framework.  

Most controversial sectors that impact society and the human race often have regulatory laws, protocol frameworks to guide how developments are made, and agencies to ensure these rules are followed. 

Notable examples are the crypto markets, finance, climate change, mining, and many more. 

However, to the surprise of many, there has yet to be an investigation, framework, or structured ethics to guide the development of AI tools and services.

Nevertheless, CAIDP believes FTC has the authority to take action and act as a positioned agency to spearhead AI creation and consumer protection in the United States of America.  

There may be a structured moratorium on further developing and releasing commercial versions of GPT-4 until a proper framework is established. 

As detailed in the letter, the Digital Policy firm favors growth and innovations as it creates a wide range of opportunities and benefits to society and its entirety. 

However, there is a need to maintain control of these systems to mitigate risks that may result in colossal outcomes. 

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.