ChatGPT Faces 15 Million Euros Fine In Italy For Privacy Violations

Italy’s data protection agency, Garante, fined OpenAI 15 million Euros (USD 15.58 million) for breaching ChatGPT privacy rules. The violations include processing personal data without a legal basis and lacking adequate age verification systems, as revealed by an investigation into its data handling practices.

The investigation, initiated in 2023, revealed violations of transparency obligations and risks to children under 13. OpenAI deemed the penalty “disproportionate” and plans to appeal. Garante ordered OpenAI to conduct a six-month public awareness campaign on data collection practices. The penalty reflects OpenAI’s cooperative stance, potentially avoiding a larger fine under General Data Protection Regulation (GDPR) rules. The platform was previously banned but reinstated after addressing compliance concerns. OpenAI criticised the decision, stating the fine exceeded its Italy-related revenue during the relevant period.