FTC's OpenAI Probe Is the First Salvo of AI Regulation in the U.S. - The Fashion Law

The Federal Trade Commission (FTC) has begun investigating OpenAI, the company behind ChatGPT, for potential violations of consumer protection laws. European regulators have already taken action, and Congress is working on legislation to regulate the AI industry. The FTC has requested information on user complaints, unfair or deceptive practices, data acquisition and training processes, and privacy protection. Generative AI models like ChatGPT can produce errors, biases, and violate privacy, leading to potential harm. Adequate safeguards and disclosures are needed to address these risks. The European Commission has published ethical guidelines for trustworthy AI. The FTC's investigation may result in fines or a consent decree for OpenAI.


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