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The Italian Data Protection Authority (IDPA), also known as the Garante, has fined OpenAI 15 million euros ($15.7 million) and ordered the company to launch a six-month public awareness campaign following a data collection probe of its flagship AI model, ChatGPT. The investigation revealed that OpenAI failed to notify the IDPA about a data breach in March 2023, among other violations.
The Data Breach
In March 2023, OpenAI did not inform the IDPA about a data breach. Additionally, the company processed users’ personal data for training ChatGPT without having an adequate legal basis. According to the IDPA, this action violated principles of transparency and informed consent, breaching data protection laws.
Lack of Age Verification Mechanisms
The investigation further uncovered that OpenAI did not provide age verification mechanisms. This omission posed a significant risk of minors, particularly those under 13, accessing content generated by ChatGPT. Such content may include inappropriate responses unsuitable for their level of development and self-awareness.
Corrective Measures
As part of its corrective actions, the IDPA has directed OpenAI to conduct a six-month public awareness campaign. The campaign will utilize radio, television, newspapers, and digital platforms to promote public understanding of ChatGPT. Key aspects include data collection for AI training and the legal rights available to users, such as opposition, rectification, and cancellation.
Consequences of Non-Compliance
If OpenAI fails to address the issues within the specified timeframe, the company could face further penalties under the European Union’s General Data Protection Regulation (GDPR). Potential fines may reach up to 20 million euros or 4% of global turnover. Notably, during the investigation, OpenAI’s collaborative approach delayed the imposition of stricter fines.
Background of the Investigation
The IDPA initiated its investigation in March 2023 and concluded after considering an opinion from the European Data Protection Board (EDPB) on data usage for AI development. Italy became the first Western country to temporarily restrict access to ChatGPT due to privacy concerns, prompting the IDPA to launch its investigation.
Regulatory Criticism
Italian regulators faced criticism for their stance on ChatGPT. Initially, they imposed a temporary ban pending transparency measures. However, following the fine and corrective campaign, the regulator emphasized compliance with data protection laws.
Related Content
For more details on this matter, you can refer to our related article: "The European Data Protection Landscape: Navigating AI’s Impact."
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