OpenAI Sued Over Human Review of Private Chats
A proposed class action lawsuit alleges that contractors accessed sensitive user conversations without proper disclosure.
Updated on Sept. 24, 2026 in Artificial Intelligence
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Two California residents have filed a class action lawsuit against OpenAI, alleging that the company allowed human contractors to review and score private ChatGPT conversations. The legal challenge centers on a program known as Project Lily, which plaintiffs claim was used without sufficient notification to users.
Why it matters
The lawsuit raises significant privacy concerns regarding how artificial intelligence companies utilize human review to improve their models. It highlights a tension between the need for model safety training and the expectations of users regarding the confidentiality of their digital interactions.
The lawsuit, identified as case 3:26-cv-10527, details a review process where contractors scored model responses on a scale of one to seven. OpenAI currently retains copies of Temporary Chats for safety monitoring for a duration of up to 30 days.
The players
OpenAI
An artificial intelligence research organization and the developer of the ChatGPT platform.
U.S. District Court for the Northern District of California
The federal court presiding over the lawsuit filed by the plaintiffs.
The details
Contractors recruited via third-party firms allegedly used specialized dashboards to access summaries of past ChatGPT activity and location data. While OpenAI maintains that its consumer-data policy allows for content access to support model improvements, the plaintiffs argue that users were not adequately informed that human reviewers were part of this process.
Timeline
The complaint was filed in the U.S. District Court for the Northern District of California on September 16, 2026.
OpenAI retains copies of Temporary Chats for up to 30 days for safety monitoring.
The Tech Race
This case mirrors the broader struggle to define data privacy rights in the era of large language models, where model improvement often conflicts with user privacy. It signals a shift toward increased scrutiny of the human-in-the-loop systems that power modern AI development.
Users concerned about data privacy can opt out of certain data sharing through OpenAI's settings if they wish to limit how their content is used. The outcome of this case may lead to clearer disclosures or more restrictive data retention policies for mainstream AI services.
The takeaway
Users should regularly review their privacy settings on AI platforms to understand how their interaction data is stored and utilized. Being aware of data retention periods can help individuals better protect their personal information while using generative AI tools.
Further reading
For more context on how industry privacy standards are evolving, visit our Artificial Intelligence section.
Source note: This article includes information reported by TokenPost.
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Should AI companies require explicit user consent before human contractors review private chat conversations?
