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OpenAI under fire: Italy fines millions for privacy violations
Record fine for OpenAI: the Italian Data Protection Authority accuses the company of violations in the collection of personal data, raising important questions about ethics and transparency in the use of AI
Isabella V24 December 2024

 

ChatGPT developer OpenAI is under fire from Italian authorities for alleged violations of personal data collection and management. A €15 million fine, accompanied by compliance orders, highlights the growing tensions between regulation and technological innovation.

Key points:

  • Significant fine: The Italian authority imposed a €15 million fine on OpenAI for data management.
  • Lack of transparency: The lack of clarity in the use of personal data and the lack of a legal basis for their collection were contested.
  • Protection of minors: Investigations highlighted a weak system of age verification, exposing minors to potential risks.
  • Compliance with GDPR: ChatGPT’s training practices were found to conflict with the European regulation on data protection.

OpenAI is at the center of a legal dispute in Italy that could cost the company a fine of 15 million euros, equivalent to approximately 15.58 million dollars, for alleged violations related to the management of personal data. The Italian data protection authority, Garante, conducted an in-depth investigation into the data collection methods used to train ChatGPT. The investigation found that OpenAI did not provide users with clear and transparent information on the use of their personal data, thus lacking an adequate legal basis for such activity, as required by the European Union’s General Data Protection Regulation (GDPR).

Another critical aspect of the investigation concerns the protection of minors. According to the authorities, the age verification process integrated into ChatGPT was inadequate, allowing children and teenagers to access AI-generated content without adequate safeguards. In addition, the authority raised concerns about a data security breach that occurred in March 2023, of which OpenAI did not properly inform users.

In addition to the fine, the Garante has ordered OpenAI to undertake a public awareness campaign, which must last at least six months, to explain in detail how the ChatGPT system works. This initiative aims to ensure that users – as well as those who do not use the service – can better understand how data is collected and used, what rights individuals have and how they can exercise greater control over their personal data. The campaign will include detailed information on the AI ​​training model and access to personal data.

OpenAI reacted to the decision by calling it disproportionate, underlining that the amount of the fine exceeds the revenues obtained by the company in Italy in the period considered. It also stated its intention to appeal the fine, while reiterating its commitment to developing AI solutions that respect users’ privacy rights and current regulations. This case highlights the growing tensions between companies involved in the development of artificial intelligence and regulatory authorities, in a context in which technology and privacy are increasingly intertwined.

In this complex landscape, OpenAI now finds itself having to balance technological expansion with rigorous regulatory demands, a balance that will determine the future of the interactions between innovation and regulation.