ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

OpenAI Faces Class Action Lawsuit for Alleged Unauthorized Personal Data Collection

There are allegations that OpenAI gathered an extensive volume of personal data, estimated to be around 300 billion words, from the internet.
PUBLISHED JUL 6, 2023
Cover Image Source | Pexels | Hatice Baran
Cover Image Source | Pexels | Hatice Baran

A law firm based in California has recently taken legal action against OpenAI. The Clarkson Law Firm filed a class-action lawsuit claiming that OpenAI has been collecting personal data without authorization to train its AI language models, specifically ChatGPT and DALL-E.

The lawsuit alleges that OpenAI obtained private information, including personally identifiable data, from a significant number of internet users without their consent or knowledge. This complaint has been filed in the Northern District of California court.



 

The allegations in the lawsuit suggest that OpenAI gathered an extensive volume of data, estimated to be around 300 billion words, from the internet, which included personal information and content from prominent social media platforms such as Twitter and Reddit. Clarkson Law Firm contends that OpenAI carried out this data collection covertly and without fulfilling the necessary requirements of registering as a data broker, as mandated by relevant laws.

The law firm highlights the absence of informed consent or awareness on the part of the individuals whose data is claimed to have been utilized for training ChatGPT and DALL-E.

Source: GettyImages | Leon Neal  Staff
Source: GettyImages | Leon Neal Staff

OpenAI has been at the center of controversy regarding its data collection practices. Previously, there was no explicit option for users to opt out of sharing their conversations and personal information with OpenAI for model training purposes. Furthermore, ChatGPT faced a ban in Italy under Europe's General Data Protection Regulation (GDPR) due to concerns over inadequate protection of user data, particularly that of minors. This class-action lawsuit not only highlights OpenAI's opaque privacy policies but also focuses on data that was scraped from the web without being explicitly intended for use in training AI models.

Source: GettyImages | Tomohiro Ohsumi  Stringer
Source: GettyImages | Tomohiro Ohsumi/Stringer

The lawsuit raises significant concerns about OpenAI's privacy policies, especially regarding existing users. It alleges that OpenAI has profited from the data it collected without compensating the source, leveraging billion-dollar investments from Microsoft and revenue generated through ChatGPT Plus subscriptions. The complaint specifically accuses OpenAI of violating privacy, negligence in safeguarding personal data, and larceny by illegally obtaining massive amounts of personal information to train its AI models.

Source: GettyImages | Leon Neal  Staff
Source: GettyImages | Leon Neal Staff

The complaint lists a total of 15 counts against OpenAI, encompassing various allegations related to privacy violations, negligence, and illegal acquisition of personal data. The counts highlight OpenAI's alleged misuse of publicly available datasets, such as Common Crawl, Wikipedia, and Reddit, without obtaining proper permission or consent from users. Although personal information shared on social media platforms and other public domains may be accessible, the lawsuit argues that using such data outside of the intended platform could constitute a violation of privacy.

Source: GettyImages | Leon Neal  Staff
Source: GettyImages | Leon Neal Staff

In Europe, legal distinctions exist between public domain and free-to-use data, thanks to the GDPR. However, in the United States, this issue remains a topic of debate. Nader Henein, a privacy research VP at Gartner, supports the sentiment of the lawsuit, emphasizing the importance of individuals having control over how their data is used, even when it is publicly available. Nevertheless, Henein expresses uncertainty regarding the stance the U.S. legal system will take on this matter.

Source: GettyImages | Leon Neal  Staff (2)
Source: GettyImages | Leon Neal Staff 

The outcome of the lawsuit against OpenAI remains uncertain. As the legal proceedings unfold, it will be interesting to see how the court addresses the allegations of stolen data and the violation of privacy. This case could have significant implications for the data collection practices of AI companies and the protection of the personal information of individuals in the digital age.

MORE ON MARKET REALIST
The best friends, Hanna Chung and Laura Tarpley, got tricked by just one word in the end.
6 hours ago
The player, Shannon Hunt got the host excited before missing the puzzle by a few letters.
8 hours ago
The founder of Hairfin managed to make it through the heckling to get a deal.
9 hours ago
The player, Jeff Richardson put up a stunning performance to drive home a new car.
1 day ago
Since Kevin O'Leary made the offer just to mess with Corcoran, the deal hit the Shark where it hurts.
1 day ago
Harrison chose to pass on the most important item of the collection for a strange reason.
1 day ago
The contestant, Alexa Kalanz was doing well throughout the game despite a rough start.
1 day ago
Despite having just 25% ownership of her company, Meagan Bowman managed to bag a $400,000 deal.
2 days ago
In the end, Harrison felt like he hit the jackpot as he knew every collector would be after the item.
2 days ago
Former players and audience members shared how the show deals with controversial statements.
3 days ago
Fans were divided on whether Adam Wredberg's Bonus Round puzzle was solvable or not.
3 days ago
The lucky win delighted the fans as the contestant, Sunita Baru took home more than $50,000.
4 days ago
Chris and Jeanie Rodgers didn't just beat up the zombie on the show, but also had him present their product to the judges.
4 days ago
Fans on Reddit complained complained that some games are either overly difficult by design or favor only physically fit contestants.
4 days ago
Contestant Joey Sweet took the loss in stride, but the show's viewers weren't happy with the puzzle selection.
5 days ago
A lot of things on set were put to the test during the "Is it real or is it cake?" challenge, including the host.
5 days ago
Fans were left disappointed after the contestant, Alicia Slagle, failed to guess an easy phrase in the finale.
5 days ago
Jackie Fakhoury was also joined by her husband and son in celebration on stage.
6 days ago
The guest had no idea that her $30 ring was studded with diamonds and made of platinum.
6 days ago