OpenAI, the Creator of ChatGPT, is Charged With Breaking Federal Trade Law

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Last Updated on March 31, 2023 by Bitfinsider

The U.S. received an official complaint from the Center for AI and Digital Policy. Federal Trade Commission has charged OpenAI, the company behind the enormously successful ChatGPT, with violating the FTC Act’s provision on unfair and deceptive business practices.

The FTC has a clear duty to look into and outlaw unfair and deceptive business practices, according to the center’s creator and president, Marc Rotenberg. “We believe that the FTC should look closely at OpenAI and GPT-4,” he said.

Not by accident, the FTC revised the law last month to include wording aimed at creators of AI software like OpenAI. The agency cautioned designers against overstating their abilities, making false performance claims, or claiming superiority to non-AI goods without sufficient justification.

The Michael Dukakis Institute for Leadership and Innovation, founded by the former Massachusetts governor and unsuccessful Democratic candidate for president, is where the Center for AI and Digital Policy was founded in 2020. The organization is now located in Washington, DC. Additionally, the FTC advised developers to research possible risks and impacts prior to launch.

Before releasing your AI product onto the market, “you need to be aware of the reasonably foreseeable risks and impact,” the agency advised. “You can’t just blame the technology’s third-party developer if something goes wrong—perhaps it fails or produces biased findings. Furthermore, you cannot claim that you are not accountable because the technology in question is a “black box” that you cannot comprehend or evaluate.

Since 2017, as bitcoin and artificial intelligence have grown in acceptance and popularity, the FTC has warned against their unethical applications.

Many are questioning OpenAI’s quick ascent to industry dominance in light of GPT-4, the most recent version of ChatGPT, which gained fame almost overnight. The FTC is being questioned by the Center for AI and Digital Policy to see if OpenAI has met with FTC regulations.

Days after a number of prominent figures in the tech sector, including Tesla and Twitter CEO Elon Musk, co-signed an open statement calling for a halt to the development of AI systems like OpenAI’s GPT-4 platform, the Center filed a complaint with the FTC.

Investigations into AI’s rapid growth and the need for rules are being demanded by a number of organizations, including the Center for Artificial Intelligence and Digital Policy. In a declaration published on Thursday, the United Nations Educational, Scientific, and Cultural Organization (UNESCO) called for the creation of a “Global Ethical Framework.”

Source: Twitter

By adopting the Recommendation on the Ethics of Artificial Intelligence, the 193 Member States of UNESCO’s General Conference decided to create a universal standard for AI ethics. While acting as a moral benchmark and foundation for encouraging adherence to the rule of law in the digital sphere, this framework seeks to protect and promote human rights and dignity.

The director-general of UNESCO, Audrey Azoulay, stated that “the world needs stronger ethical rules for artificial intelligence: this is the challenge of our time.”

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