[Two California ChatGPT users filed a proposed class action against OpenAI in Northern California][The lawsuit targets “Project Lily” where contractors read and score user conversations][Plaintiffs demand opt-in consent and default-off “Improve the model” setting][OpenAI must respond by October 13]
Two California ChatGPT users filed a proposed class action against OpenAI this month in the U.S. District Court for the Northern District of California, accusing the company of allowing outside contractors to read real user conversations without proper disclosure. The lawsuit centers on “Project Lily,” an internal OpenAI program first exposed by 404 Media on September 14, where contractors hired through staffing firms summarize user prompts and score chatbot answers on a 1-to-7 scale.
The complaint alleges that OpenAI never clearly told users a human might review their chats, though the company runs conversations through an automated filter first. According to the filing, the filter does not always catch everything, meaning personal details sometimes reach contractors.
Plaintiffs seek opt-in consent before any conversation goes to an outside reviewer, demand the “Improve the model for everyone” setting be switched off by default, and want a clear warning inside the chat window itself. The complaint packs eight legal claims including violations of California’s Unfair Competition Law and intrusion upon seclusion, while seeking damages, restitution, and punitive damages.
OpenAI has until October 13 to respond, and the case could reshape how chatbot companies disclose human oversight of user data. Market projections via Myriad show Bitcoin trading near $84,217 as the crypto sector watches the privacy battle unfold.
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