FTC Investigates ChatGPT Creator OpenAI

The Federal Trade Commission (FTC) is investigating OpenAI, the company that made the viral AI chatbot ChatGPT, for potential violations of consumer protection law.

The Details: In a 20-page document first reported by The Washington Post (Lean Left bias), the FTC asked OpenAI to answer questions about how it gathers, vets, and protects data. The probe marks the first major regulatory obstacle for the rising AI company. FTC Chair Lina Khan later explained, “We've heard reports where people's sensitive information is showing up in response [to] an inquiry from somebody else. We've heard about libel, defamatory, flatly untrue things that are emerging. That's the type of fraud, deception that we're concerned about.”

For Context: Khan, an outspoken critic of Big Tech, has previously signaled a willingness to apply consumer protection law to AI, stating, “There is no AI exemption to the laws on the books.” Khan’s FTC has brought lawsuits against tech companies and reportedly plans to sue more. However, a judge’s rejection of the FTC’s bid to block Microsoft’s acquisition of Activision Blizzard reportedly led critics to raise “fresh questions” about Khan’s strategy.

How the Media Covered It: Coverage was fairly similar regardless of the source’s bias rating. Coverage was most common in business and tech outlets, which AllSides often rates as Center or Lean Left.