The US's top competition watchdog has opened an investigation into OpenAI, the maker of ChatGPT, on claims it has run afoul of consumer protection laws by putting personal reputations and data at risk. The move marks the strongest regulatory threat to the Microsoft-backed startup that kicked off the frenzy in generative artificial intelligence, enthralling consumers and businesses while raising concerns about its potential risks. The Federal Trade Commission (FTC) this week sent a 20-page demand for records about how OpenAI addresses risks related to its AI models. The agency is investigating whether the company engaged in unfair or deceptive practices that resulted in "reputational harm" to consumers. One of the questions has to do with steps OpenAI has taken to address the potential for its products to "generate statements about real individuals that are false, misleading, or disparaging".