# Australian mayor readies world&#8217;s first defamation lawsuit over ChatGPT content
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Australian Mayor Threatens Defamation Lawsuit Against
Meta Description: Mayor Brian Hood of Hepburn Shire, Australia, may sue OpenAI for defamation over ChatGPT falsely linking him to bribery scandal. Legal action pending.
URL: https://financedigest.com/australian-mayor-readies-worlds-first-defamation-lawsuit-over-chatgpt-contenthtml

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By Byron Kaye

SYDNEY (Reuters) – A regional Australian mayor said he may sue OpenAI if it does not correct ChatGPT’s false claims that he had served time in prison for bribery, in what would be the first defamation lawsuit against the automated text service.

Brian Hood, who was elected mayor of Hepburn Shire, 120km (75 miles) northwest of Melbourne, last November, became concerned about his reputation when members of the public told him ChatGPT had falsely named him as a guilty party in a foreign bribery scandal involving a subsidiary of the Reserve Bank of Australia in the early 2000s.

Hood did work for the subsidiary, Note Printing Australia, but was the person who notified authorities about payment of bribes to foreign officials to [win currency printing contracts](https://www.financedigest.com/incentive-fm-group-wins-contract-with-global-events-company.html "Incentive Fm Group Wins Contract With Global Events Company"), and was never charged with a crime, lawyers representing him said.

The lawyers said they sent a letter of concern to ChatGPT owner OpenAI on March 21, which gave OpenAI 28 days to fix the errors about their client or [face a possible defamation lawsuit](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles").

OpenAI, which is based in [San Francisco](https://www.financedigest.com/paul-jasper-joins-rimon-laws-san-francisco-office-as-partner.html "Paul Jasper joins Rimon Law’s San Francisco Office as Partner"), had not yet responded to Hood’s legal letter, the lawyers said. OpenAI did not [respond to a Reuters email out of business](https://www.financedigest.com/pitiless-machines-will-kill-your-business-if-you-dont-respond-now-warns-servion.html "‘Pitiless machines’ will kill your business if you don’t respond now, warns Servion") hours.

If Hood sues, it would likely be the first time a person has sued the owner of ChatGPT for claims made by the [automated language product which has become wildly popular since its launch](https://www.financedigest.com/automated-creative-launches-in-the-us-and-canada.html "Automated Creative launches in the US and Canada") last year. Microsoft Corp [integrated ChatGPT into its search engine](https://www.financedigest.com/white-bullets-integration-with-silverbullets-next-generation-context-outcomes-engine-4d-is-now-live.html "White Bullet’s integration with Silverbullet’s next generation Context Outcomes Engine, 4D, is now live") Bing in February.

A [Microsoft spokesperson was not immediately available](https://www.financedigest.com/marklogics-enterprise-nosqldatabase-platform-is-now-available-for-microsoft-azure.html "MarkLogic’s Enterprise NoSQLDatabase Platform Is Now Available for Microsoft Azure") for comment.

It would potentially be a landmark moment in the sense that it’s applying this defamation law to a new area of [artificial intelligence](https://www.financedigest.com/how-artificial-intelligence-is-simplifying-sanctions-screening-for-insurers.html "How Artificial Intelligence is Simplifying Sanctions Screening for Insurers") and publication in the IT space,” James Naughton, a partner at Hood’s lawfirm Gordon Legal, told Reuters.

He’s an elected official, his reputation is [central to his role,”](https://www.financedigest.com/inflation-fighting-central-bankers-air-climate-role-doubts.html "Inflation fighting central bankers air climate role doubts") Naughton said. Hood relied on a public record of shining a light on corporate misconduct, “so it makes a difference to him if people in his [community are accessing](https://www.financedigest.com/51-of-brits-support-teresa-may-and-would-grant-access-to-their-personal-communication-and-internet-browsing-history-as-part-of-the-snoopers-charter.html "51%* of Brits support Teresa May and would grant access to their personal communication and internet browsing history as part of the Snooper’s Charter ") this material.

Australian defamation damages payouts are generally capped around A$400,000 ($269,360). Hood did not know the exact number of people who had accessed the [false information about him – a determinant of the payout size – but the nature of the defamatory statements was serious enough that he may claim](https://www.financedigest.com/philips-subsidiary-to-pay-over-24-million-for-alleged-false-claims-for-medical-equipment.html "Philips subsidiary to pay over  million for alleged false claims for medical equipment") more than A$200,000, Naughton said.

If Hood files a lawsuit, it would accuse ChatGPT of giving users a false sense of accuracy by failing to include footnotes, Naughton said.

It’s very difficult for somebody to look behind that to [say ‘how does the algorithm come](https://www.financedigest.com/professionals-in-the-finance-sector-say-they-want-their-personal-data-edited-or-deleted-when-gdpr-comes-in.html "Professionals in the finance sector say they want their personal data edited or deleted when GDPR comes in") up with that answer?'” said Naughton. “It’s very opaque.”

($1 = 1.4850 [Australian dollars)](https://www.financedigest.com/asian-stocks-make-7-month-highs-australian-dollar-gains-on-hot-inflation.html "Asian stocks make 7-month highs, Australian dollar gains on hot inflation")

(Reporting by Byron Kaye; Editing by Christopher Cushing)


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