OpenAI Faces Penalty: Italy’s Data Protection Authority Fines Euro 15 Million After Probe Into ChatGPT Data Collection, Privacy Violations
OpenAI led by Sam Altman is reportedly fined Euro 15 million by Italy for breaching privacy laws over inadequate age verification and transparency issues with ChatGPT.
New Delhi, December 21: OpenAI, Sam Altman-run company, has been fined Euro 15 million by Italy's data protection authority, Garante Privacy, after an investigation into ChatGPT's services. As per reports, the fine has been imposed due to breaches of data privacy laws. The probe revealed violations in a lack of age verification mechanisms to protect minors.
As per a report of GPDP, OpenAI will have to carry out a six-month information campaign and pay a fine of Euro 15 million. The authority responsible for safeguarding personal data has recently taken action against OpenAI regarding how it handles the ChatGPT service. The action includes corrective measures and penalties. OpenAI Introduces ‘Projects’ To Simplify Organising Chats and Files for ChatGPT Users.
OpenAI Faces Euro 15 Million Fine in Italy
The authority has stated that the OpenAI did not inform them about a data breach that occurred in March 2023. Additionally, the company used users' personal data to train ChatGPT without establishing a reason for doing so. The action goes against the principle of transparency in handling personal information. Additionally, the company failed to meet its obligations to provide users with the necessary information regarding their data.
The provision addressing violations against the OpenAI follows an investigation that began in March 2023. It comes after the European Data Protection Board's opinion, which identified issues regarding personal data processing in AI-based service design, development, and distribution. As per reports, OpenAI has not provided any systems to check the age of its users. It reportedly raises concerns about the possibility of children under the age of 13 encountering responses that may not be appropriate for their level of understanding and maturity. Sam Altman-Run OpenAI Hits Back at Elon Musk, Shares Timeline of Events and Says Musk Wanted an OpenAI For-Profit.
Additionally, to promote better transparency in how personal data is handled, the authority has reportedly instructed OpenAI to run a communication campaign. The campaign will last for six months and will be broadcasted on various platforms, including radio, television, newspapers, and the Internet.
(The above story first appeared on LatestLY on Dec 21, 2024 11:44 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).