Italy orders OpenAI to stop processing users' data else face fine

New Delhi, April 1 (IANS) Italian regulators have ordered Microsoft-owned OpenAI to immediately stop the processing of Italian users' data to general AI models.

The Italian regulator Garante said it's concerned that the ChatGPT maker is breaching the European Union's (EU) General Data Protection Regulation (GDPR), and has opened a probe.

OpenAI will have to notify the Italian regulators within 20 days of the measures implemented to comply with the order, otherwise a fine of up to 20 million euros or 4 per cent of its total worldwide annual turnover may be imposed.

"There is no way ChatGPT can continue to process data in breach of privacy laws. The Italian SA has imposed an immediate temporary limitation on the processing of Italian users' data by OpenAI, the US-based company developing and managing the platform. An inquiry into the facts of the case was initiated as well," the regulator noted.

OpenAI, the creator of ChatGPT, late last month admitted that some users' payment information may have been exposed earlier this week when it took ChatGPT offline owing to a bug.

It's worth noting that OpenAI does not have a legal entity established in the EU.

Any data protection authority can intervene under the GDPR if it sees risks to local users.

Finally, the Italian regulators emphasised that the lack of age verification mechanism exposes children to receiving responses that are absolutely inappropriate to their age and awareness, even though the service is allegedly addressed to users aged above 13 according to OpenAI's terms of service.

OpenAI was yet to respond to the Italian regulator's order.

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