OpenAI Faces 15 Million Fine For Data Privacy Violations In Italy

OpenAI has been fined 15 million euros by Italy’s data protection authority -Il Garante per la protezione dei dati personali- following an investigation into the management of its ChatGPT service, as reported by local news agency ANSA.

The penalty was imposed due to a series of violations, including the lack of notification regarding a data breach that occurred in March 2023, the improper use of user data to train the AI without adequate legal grounds, and a failure to meet transparency obligations regarding user information, says ANSA.

The investigation, launched in March 2023, was prompted by concerns over how OpenAI collects and processes personal data. It was further influenced by a recommendation from the European Data Protection Board (EDPB), which sought a unified approach to handling data in the context of AI services, reported ANSA.

Among the specific issues identified were inadequate mechanisms for age verification, leading to potential risks for minors under 13 years of age, who could be exposed to inappropriate content, according to ANSA.

In response to these findings, Il Garante has mandated OpenAI to implement a six-month institutional communication campaign across various media channels, including radio, television, newspapers, and the internet, as reported by ANSA.

The goal of this campaign is to raise public awareness about how ChatGPT works, particularly regarding data collection and user rights, such as the right to object, rectify, or erase personal data, says ANSA.

OpenAI will collaborate with the regulatory authority to ensure that users are better informed about these processes and their rights under the General Data Protection Regulation (GDPR), as reported by ANSA.

OpenAI has expressed its intention to appeal the decision, stating that the fine is disproportionate to the company’s revenue generated in Italy during the same period, reports ANSA. The company highlights its previous cooperation with the Garante, citing the successful reactivation of ChatGPT in Italy just a month after a 2023 suspension order was issued, as reported by ANSA.