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      OpenAI Faces Class-Action Lawsuit Over ChatGPT User Privacy Concerns

      Two users of ChatGPT from California have initiated a proposed class-action lawsuit against OpenAI in the United States District Court for the Northern District of California. The lawsuit, filed earlier this month, alleges that OpenAI did not adequately inform users that their conversations were being accessed by external contractors for processing under an initiative known as Project Lily.

      The complaint, served to OpenAI on September 2, claims that 'AI data reviewers' and 'chatbot evaluators' employed through a third-party staffing company were able to read actual ChatGPT prompts and conversations. These contractors were tasked with summarizing user intent and scoring responses from various models, a process known as reinforcement learning from human feedback (RLHF). The plaintiffs argue that users were not explicitly notified that their conversations could be reviewed by humans, despite OpenAI's automated filtering system intended to protect user privacy.

      The lawsuit also highlights concerns regarding the potential exposure of personal information, as the reviewers' dashboard reportedly included summaries that could reveal users' approximate locations and occupations. OpenAI has stated that the purpose of these reviews is to mitigate certain behaviors in chatbots, such as mimicking human-like responses and excessive flattery towards users. The lawsuit includes eight legal claims, citing violations of California's Unfair Competition Law and Consumer Privacy Act, among others, and seeks damages and restitution for alleged unjust enrichment.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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