OpenAI Lawsuit Over Alleged Undisclosed Human Review of ChatGPT Conversations

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.