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OpenAI Lawsuit

Lawsuit Alleges OpenAI Sent Private ChatGPT Conversations to Outside Contractors Without Adequate Consent

Additional details and a copy of the complaint are provided below.

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Summary of the case

Almeida Law Group has filed a class action lawsuit against OpenAI OpCo, LLC on behalf of ChatGPT users. The Complaint alleges that OpenAI routes real user conversations to hundreds of contractors employed by outside companies, who read those conversations and score ChatGPT’s answers in order to improve the product. OpenAI’s internal codename for the program is Project Lily.

According to the Complaint, nothing OpenAI puts in front of users adequately discloses this. The Terms of Use, the Privacy Policy and the policy titled “How your data is used to improve model performance” describe a process of retention, automated redaction and machine training. None of them says a person reads what you wrote.

What the lawsuit alleges

  • OpenAI retains hundreds of contractors, recruited through a staffing firm, to read real ChatGPT conversations
  • Reviewers can be shown an entire conversation, write a summary of what they believe the user was trying to do, score the responses and write out their reasoning
  • The reviewer’s screen may also display a summary of what the user has used ChatGPT for previously, including where the user lives
  • OpenAI’s Privacy Policy lists eleven categories of outside companies that receive user data. None of them is a data labeling, annotation or human review vendor
  • OpenAI discloses human review elsewhere when it wants to, including for flagged safety content and for business account administrators, which the Complaint alleges shows OpenAI knew users would want to know
  • The automated tool OpenAI runs on conversations before contractors see them is, in OpenAI’s own words, a redaction aid rather than a guarantee

The Complaint brings claims under California’s Unfair Competition Law, Consumers Legal Remedies Act and False Advertising Law, the California Consumer Privacy Act, the California Constitution’s right to privacy, and common law claims for fraudulent concealment, intrusion upon seclusion and unjust enrichment.

Read the Complaint

The full Class Action Complaint, filed September 16, 2026 in the United States District Court for the Northern District of California, is available below.

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