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OpenAI Faces Lawsuit Over Reading ChatGPT Conversations

OpenAI is facing a class action lawsuit over alleged privacy violations concerning user conversations on ChatGPT, demanding stricter consent protocols.

Mercation Admin
September 24, 2026 1 min read
OpenAI Faces Lawsuit Over Reading ChatGPT Conversations

OpenAI Faces Legal Action Over User Privacy

OpenAI is embroiled in a proposed class action lawsuit concerning the privacy of user interactions with its ChatGPT platform. The lawsuit was filed in the U.S. District Court for the Northern District of California by two ChatGPT users from California, who allege that the company allowed external contractors to access their conversations without proper notification.

The core of the lawsuit revolves around an internal initiative known as Project Lily, where contractors, hired through a staffing agency, summarize user prompts and evaluate AI responses. The plaintiffs claim that users were not adequately informed that their chats could be accessed by human reviewers instead of being solely processed by AI.

The complaint highlights that while OpenAI employs an automated filtering system to protect user privacy, this system is not foolproof and can inadvertently expose personal information to contractors. Reviewers reportedly use a dashboard that may reveal sensitive details about users, despite usernames being removed.

The plaintiffs are seeking damages and have requested that OpenAI implement measures to enhance user privacy. These include requiring explicit user consent before conversations can be reviewed by external parties and disabling the default setting for the "Improve the model for everyone" feature. They are also asking for clearer warnings within the chat interface regarding human access to conversations.

The deadline for OpenAI to respond to the lawsuit is set for October 13.