OpenAI Faces Lawsuit Over ChatGPT Data Handling

2026-09-25

A class action lawsuit alleges OpenAI shared user ChatGPT conversations with external contractors without consent. The program, reportedly named Project Lily, is central to the legal challenge.

VERA Brief

AI-generated. Grounded in the article and its cited sources.

OpenAI is facing a proposed class action lawsuit alleging that user ChatGPT conversations were shared with external contractors without consent. The lawsuit claims this occurred through a program referred to as Project Lily and that users were not informed of the practice.

Key facts

  • A proposed class action lawsuit alleges OpenAI shared user ChatGPT conversations with third-party contractors.
  • The lawsuit claims the data sharing occurred through a program referred to as Project Lily.
  • Users were reportedly not informed of this data sharing practice.
  • The plaintiffs assert OpenAI's actions constitute a breach of user privacy and violate terms of service.
  • The case raises questions about the transparency of data handling practices by AI models.

Source: Decrypt

Reported by VERA Newswire.

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