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 guest was representing a squadron and the item was a regimental jewel.
37 minutes ago
The chicken was so bad that the creator had to take it back to the store.
4 hours ago
The contestant simply didn't realise what he had done even after Harvey's reaction.
5 hours ago
The painting set a record on the show for being one of the most expensive pieces of art.
1 day ago
The cups were made thousands of years back and so regulations were not an issue as per the expert.
1 day ago
The founders of Surprise Ride had a deal but they failed to close it on time.
1 day ago
Harrison got his hands on one of the most sought-after pieces of American history for $1.45 million.
2 days ago
The popular TikTok creator claimed the food product was one of the worst the store offers.
2 days ago
Harrison wasn't willing to part with it but sold it to UFC boss Data White.
3 days ago
The entrepreneurs who followed Greiner's book to scale their business got the ultimate reward.
3 days ago
The watch was something that the expert himself hadn't seen in his career.
3 days ago
The Season 3 champion, W. Kamau Bell, is looking to become a regular part of the game show.
4 days ago
Harvey was excited to hear the answers as soon as he read the question.
4 days ago
When the show's guitar expert, Jesse Amoroso, cut the item's value by 75% from the asking price, the guest lost his cool.
5 days ago
Fans argued that the show misattributed the song "Life Is A Highway" to another composer.
5 days ago
Jennings opened up about keeping "Jeopardy!" the way it was when he was a fan.
5 days ago
Harvey also mocked the player for an answer that earned his team a second strike.
5 days ago
When she did find out how precious the painting from her mother was, she could hardly speak.
5 days ago
The concern among shoppers is growing after a document suggesting the policy change leaked.
6 days ago
The item was unique since there was only one more of the kind in the world.
6 days ago