German Data Protection Authority Warns of Targeted Advertising Risks in ChatGPT

The Data Protection Authority in the German state of Lower Saxony has issued a non-binding advisory to ChatGPT users, stating that OpenAI's planned personalized ads in the European Union involve a significant risk to data protection and personal rights.

OpenAI plans to introduce personalized ads in Europe across the free version and the "ChatGPT Go" service at around 8 euros per month, based on evaluating past and present conversations as well as device data and user context, which raised concerns for the regulatory body.

The advisory noted that the personalized version will rely on consent as a legal basis, while a non-personalized alternative will be available based on legitimate interest under Article 6(1)(f) of the General Data Protection Regulation (GDPR), according to the "The Leveraged Years" website.

The authority emphasized that the issued statement is not an enforcement decision nor does it confirm that European ads have already been launched, but rather a cautionary assessment that monitors potential risks before rollout, giving users a chance to pay attention to their data before it is commercially exploited.

What do these terms mean?

**Profiling:** Collecting user data to understand their behavior and interests and then targeting content or advertisements to them on that basis. **General Data Protection Regulation:** A European law regulating how individuals' data is processed and requiring a legal basis for doing so, abbreviated as GDPR. **Legitimate Interest:** A legal ground allowing data processing without explicit consent when there is a legitimate need balanced with the individual's rights, which is a more flexible basis but not without issues.