ChatGPT Parent OpenAI Accused of Violating Federal Trade Law

ChatGPT creator OpenAI has been accused of violating section five of the Federal Trade Commission(FTC) Act that targets unfair and unethical practices.

The Center for AI and Digital Policy, in a formal complaint with the U.S. Federal Trade Commission, has asked the commission to "look closely at OpenAI and GPT-4.”

The FTC updated the act last month to include language directed at developers of artificial intelligence programs like OpenAI.

FTC warned developers to avoid exaggerating their capabilities, making deceptive performance claims, or promising superiority over non-AI products without adequate proof.

The FTC also warned developers to explore potential risks and impacts before launch.

The Center for AI and Digital Policy is asking the FTC to investigate OpenAI to determine if the company has complied with the FTC’s rules.

The Center’s filing with the FTC comes days after several high-profile tech industry members—including Telsa and Twitter CEO Elon Musk—co-signed an open letter demanding a pause on developing AI systems like OpenAI’s GPT-4 platform.

In a related development, the United Nations Educational, Scientific and Cultural Organization (UNESCO) released its statement Thursday calling for a “Global Ethical Framework.”

In November 2021, the 193 Member States of UNESCO’s General Conference voted to establish a global standard for artificial intelligence ethics by adopting the Recommendation on the Ethics of Artificial Intelligence. This framework aims to safeguard and advance human rights and dignity while serving as an ethical guide and foundation for promoting adherence to the rule of law in the digital realm.


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