Consumer Fraud

OpenAI Lawsuit Over Alleged Undisclosed Human Review of ChatGPT Conversations

OpenAI Lawsuit Over Alleged Undisclosed Human Review of ChatGPT Conversations — Consumer Fraud class action lawsuit

Case Overview

The lawsuit was filed against OpenAI OpCo LLC by two California consumers. The core allegation is that OpenAI did not adequately disclose to users that outside contractors might review, summarize, and evaluate their conversations on ChatGPT for the purpose of developing the AI model. The plaintiffs contend that while OpenAI's documentation mentions data usage for improvement, it fails to specify that third-party contractors, through a program known internally as “Project Lily,” could access the substance of user conversations.

The claims allege violations of several California laws, including the Unfair Competition Law, Consumers Legal Remedies Act, False Advertising Law, and the Consumer Privacy Act. Furthermore, the suit includes claims for fraudulent concealment, intrusion upon seclusion, invasion of privacy, and unjust enrichment. The plaintiffs argue that the review process can expose real user prompts, including entire conversations, to contractors, even if automated privacy filters are in place.

The lawsuit seeks damages, disgorgement of profits, restitution, attorneys’ fees, and injunctive relief, and the plaintiffs have also demanded a jury trial. The case is currently filed in the U.S. District Court for the Northern District of California, and plaintiffs are represented by Victor J. Sandoval of Almeida Law Group LLC.

Who May Qualify

California consumers who used ChatGPT and whose conversations may have been reviewed by third-party contractors for model development purposes.

Frequently Asked Questions

What is the lawsuit about?

The lawsuit alleges that OpenAI failed to properly inform users that third-party contractors might review their private ChatGPT conversations for the purpose of developing the AI model, despite presenting the service as a private exchange.

What laws are allegedly violated?

The plaintiffs claim violations of California's Unfair Competition Law, Consumers Legal Remedies Act, False Advertising Law, and Consumer Privacy Act, alongside claims for invasion of privacy and fraudulent concealment.

Who represents the plaintiffs?

The plaintiffs in the ChatGPT class action lawsuit are represented by Victor J. Sandoval of Almeida Law Group LLC.

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