ChatGPT Sued Over Privacy Concerns & AI Hallucinations in Europe Again
The case highlights growing legal pressure on AI companies to ensure accuracy and protect user data
OpenAI, the company behind ChatGPT, is no stranger to legal trouble — but this latest privacy complaint in Europe could be hard to brush off.
Reports state that a Norwegian man was horrified when ChatGPT falsely claimed he had been convicted of murdering two of his children and attempting to kill the third. Now, privacy rights group Noyb is backing him in a legal challenge that could have serious consequences for OpenAI.
This isn’t the first time ChatGPT has been reported generating false personal information. Previous complaints have involved incorrect birth dates or inaccurate biographical details. The problem is that OpenAI doesn’t currently offer a way for individuals to correct this misinformation — it only allows certain responses to be blocked. But under the EU’s General Data Protection Regulation (GDPR), individuals have the right to have their personal data corrected if it's wrong.
“The GDPR is clear. Personal data has to be accurate,” said Joakim Söderberg, a data protection lawyer at Noyb. “Showing a tiny disclaimer that the chatbot can make mistakes isn’t enough.” If OpenAI is found in violation, it could face fines of up to 4% of its global revenue, according to reports. Enforcement could also force changes to how AI tools handle personal data.
Open AI found itself in a similar situation in 2023, where Italy’s privacy watchdog briefly banned and fined ChatGPT €15 million over data protection concerns, leading OpenAI to adjust its data practices and increase transparency.
Emmanuel Oyedeji
OpenAI isn’t the only AI company currently facing legal heat in Europe. Meta is also dealing with a lawsuit in France from publishers and authors who allege that Meta used their copyrighted work to train its AI models without permission. The growing tension between AI innovation and data privacy suggests that companies developing AI tools are heading for more legal challenges ahead. While Meta faces copyright issues, OpenAI’s problem is about accuracy and user control over personal data.
For OpenAI and others, the message is clear: AI-generated misinformation isn’t just a technical glitch—it’s a legal and ethical minefield. If companies want to keep pushing AI innovation, they’ll need to prioritize accuracy and user rights, or risk losing trust—and facing even bigger consequences down the line.
