FTC

OpenAI is under investigation by the Federal Trade Commission (FTC) over whether its artificial intelligence-powered tools including ChatGPT have harmed consumers.

In a letter sent to OpenAI, first reported by The Washington Post and confirmed by The Wall Street Journal, the FTC informed the company it is probing whether it has "engaged in unfair or deceptive" practices related to data security or "relating to risks of harm to consumers."

Lina Khan became chair of the Federal Trade Commission two years ago on a promise to bring bold action against the biggest tech companies.

For too long, Ms. Khan said at the time, the agency had been a weak cop and needed to challenge behemoths like Microsoft, Amazon, Meta and Google in the courts to stem their growing power. Even if the F.T.C. lost the cases, she later added, they would be a partial victory because the agency would signal that antitrust laws needed to be updated for the modern internet era.

A federal judge rejected the Federal Trade Commission’s request to stop Microsoft from completing the $69 billion purchase of video game publisher Activision Blizzard.

The decision by Judge Jacqueline Scott Corley in San Francisco could mean that Microsoft would be able to acquire the developer of popular video games like “Call of Duty” and “World of Warcraft.”

The Federal Trade Commission sued Amazon on Wednesday, alleging the retailer worked for years to enroll consumers into its Prime service without their consent, while knowingly making it difficult for them to cancel their subscriptions.

The complaint, which was filed in federal court in Seattle, alleges that Amazon used “manipulative, coercive, or deceptive user-interface designs” to trick consumers into enrolling in automatically renewing Prime subscriptions.

The Federal Trade Commission is suing Amazon for enrolling customers in its Prime program without their consent and making it difficult for them to cancel their subscriptions.

The Federal Trade Commission on Wednesday accused online retail giant Amazon of underhanded practices to keep customers enrolled in its Prime program, in a complaint filed in federal court.

The FTC is accusing Amazon of intentionally manipulating consumers into subscribing to Amazon Prime via "coercive or deceptive user-interface designs" known as "dark patterns." 

"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said.

The Federal Trade Commission sued Amazon.com AMZN -0.76%decrease; red down pointing triangle on Wednesday, alleging the retail giant worked for years to enroll consumers without consent into Amazon Prime and made it difficult to cancel their subscriptions to the program.

The Federal Trade Commission plans to seek an emergency court order that would block Microsoft MSFT 0.90%increase; green up pointing triangle from closing its $75 billion deal for Activision Blizzard ATVI -0.56%decrease; red down pointing triangle, according to a person familiar with the matter.

Mitch McConnell has been notably discreet about his pick to fill an empty seat on the Federal Trade Commission — and some insiders say it’s not hard to see why. 

Earlier this week, the Senate minority leader told the White House he plans to nominate James Lloyd, an associate deputy attorney general in Texas and antitrust hawk, as his pick for one of two vacant FTC commissioner roles, sources told On The Money. 

The Federal Trade Commission is investigating whether baby-formula makers colluded on bids for lucrative state contracts.

The agency, in documents posted to its website, said it is looking into whether Abbott Laboratories and other formula manufacturers have “engaged in collusion or coordination with any other market participant regarding the bidding” for state contracts.