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ChatGPT (OpenAI) Terms of Service & Privacy Policy

C-

ChatGPT (OpenAI)

Below Average

Based on a complete review of both the Terms of Service and Privacy Policy, OpenAI collects a significant amount of user data, including content you create, and uses it for various purposes including model training by default, though with opt-out options. The terms include mandatory arbitration and class action waivers, which limit your legal recourse.

Source: https://openai.com/policies/terms-of-use

What They Collect

Account & Identity Data

When you create an account, they collect your name, contact information, account credentials, date of birth, payment details, and transaction history. You may also upload a profile picture or username.

LOW RISK

User Content & Interactions

This includes all input you provide to the Services (prompts, uploaded files, images, audio, video, Sora characters, data from connected services) and the output you receive. It also covers interactions with other users like posts, comments, or messages.

HIGH RISK

Communication Data

If you communicate with OpenAI (e.g., via email, social media), they collect your name, contact information, and the content of your messages.

optionalLOW RISK

Contact Data

If you choose to connect your device contacts, they upload this information to identify contacts who use their services and notify you if others join later.

optionalMEDIUM RISK

Other Provided Information

Information you provide when participating in events, surveys, or for identity/age verification.

optionalLOW RISK

Usage & Technical Data

Automatically collected data includes your IP address, browser type and settings, date/time of requests, how you interact with the services (content viewed, features used, actions taken, feedback, interactions), time zone, country, device information (name, OS, identifiers), and general location from your IP address. Precise location can be collected if you choose to provide it.

MEDIUM RISK

Cookies & Tracking Technologies

They use cookies and similar technologies to operate, administer, and improve your experience, storing information like preferences and for authentication.

LOW RISK

Third-Party & Public Data

Information from security partners (for fraud/abuse prevention), marketing vendors (for potential customers), advertisers (to measure ad effectiveness for Free/Go users), and publicly available internet data (to develop and train their models).

HIGH RISK
What They Do With Your Data

Service Provision & Improvement

They use your data to provide, analyze, maintain, and develop their services, including responding to your questions, developing new features, and personalizing your experience. This includes using your Content to train their models, though you can opt out.

MEDIUM RISK

Targeted Advertising

For Free and Go users, they personalize the ads you see on their services and measure ad effectiveness, subject to your settings.

MEDIUM RISK

Communication

They use your data to communicate with you, respond to questions, and send information about services and events.

LOW RISK

Contact Identification

If you connect your contacts, they use that data to identify other users and notify you if contacts join later.

MEDIUM RISK

Security & Compliance

They use your data to prevent fraud, illegal activity, and misuse, protect system security (including monitoring content), comply with legal obligations, and protect their rights, privacy, safety, or property.

MEDIUM RISK

Data Aggregation & De-identification

They aggregate or de-identify your personal data so it no longer identifies you, then use this for analysis, service improvement, and research. They commit to maintaining and using de-identified information in that form.

LOW RISK

Third-Party Disclosure

They share your data with vendors and service providers (hosting, customer service, payment processors, marketing, IT, age/identity verification), affiliates, and in business transfers. They also share with government authorities or other third parties if legally required or to protect rights/safety.

MEDIUM RISK

Organizational Account Access

If you use a corporate email, your organization's administrators may access and control your account, including your Content.

HIGH RISK

Parental/Guardian Access

For teen users, parents/guardians can link accounts to manage settings and receive safety alerts.

LOW RISK

Sharing with Other Users/Third Parties

Certain services allow you to share content (e.g., ChatGPT conversations, Sora videos) with other users or third-party partners (e.g., search, shopping). Information shared with third parties is subject to their policies.

MEDIUM RISK
What Rights You Give Up

Content License for Service Improvement

MEDIUM RISK
We may use Content to provide, maintain, develop, and improve our Services, comply with applicable law, enforce our terms and policies, and keep our Services safe.

This means: While you own the content you create (Input and Output), OpenAI gets a broad right to use it to run, maintain, and improve their services, including training their AI models. You can opt out of your content being used for model training.

Feedback License

LOW RISK
We appreciate your feedback, and you agree that we may use it without restriction or compensation to you.

This means: Any suggestions or feedback you give them can be used by OpenAI however they want, without paying you or asking for your permission.

Disclaimer of Warranties

MEDIUM RISK
OUR SERVICES ARE PROVIDED “AS IS.” EXCEPT TO THE EXTENT PROHIBITED BY LAW, WE AND OUR AFFILIATES AND LICENSORS MAKE NO WARRANTIES (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SERVICES, AND DISCLAIM ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, NON-INFRINGEMENT, AND QUIET ENJOYMENT, AND ANY WARRANTIES ARISING OUT OF ANY COURSE OF DEALING OR TRADE USAGE.

This means: OpenAI provides its services 'as is,' meaning they don't promise that the services will always work perfectly, be accurate, or meet your specific needs. They disclaim most legal guarantees about the service quality or fitness for a particular purpose.

Limitation of Liability

HIGH RISK
OUR AGGREGATE LIABILITY UNDER THESE TERMS WILL NOT EXCEED ​​THE GREATER OF THE AMOUNT YOU PAID FOR THE SERVICE THAT GAVE RISE TO THE CLAIM DURING THE 12 MONTHS BEFORE THE LIABILITY AROSE OR ONE HUNDRED DOLLARS ($100).

This means: If something goes wrong and you suffer damages, OpenAI's financial responsibility to you is severely limited. They will not be liable for indirect damages, and their total liability will not exceed the amount you paid in the last 12 months or $100, whichever is greater.

Mandatory Arbitration

HIGH RISK
YOU AND OPENAI AGREE TO THE FOLLOWING MANDATORY ARBITRATION AND CLASS ACTION WAIVER PROVISIONS: MANDATORY ARBITRATION. You and OpenAI agree to resolve any claims arising out of or relating to these Terms or our Services... through final and binding arbitration. You may opt out of arbitration within 30 days of account creation or of any updates to these arbitration terms within 30 days after the update has taken effect by filling out this form.

This means: You agree that any legal disputes with OpenAI must be settled through binding arbitration, not in court. This means an independent arbitrator, not a judge or jury, will decide the outcome. You can opt out of this arbitration clause within 30 days of creating your account or after any updates to these terms.

Class Action & Jury Trial Waiver

HIGH RISK
CLASS AND JURY TRIAL WAIVERS. You and OpenAI agree that Disputes must be brought on an individual basis only, and may not be brought as a plaintiff or class member in any purported class, consolidated, or representative proceeding. Class arbitrations, class actions, and representative actions are prohibited. ... You and OpenAI knowingly and irrevocably waive any right to trial by jury in any action, proceeding, or counterclaim.

This means: You give up your right to join a class-action lawsuit or to participate in any group legal action against OpenAI. All disputes must be handled individually. You also give up your right to a jury trial.

Organizational Account Control

HIGH RISK
If you create an account using an email address owned by an organization (for example, your employer), that account may be added to the organization's business account with us, in which case we will provide notice to you so that you can help facilitate the transfer of your account... Once your account is transferred, the organization’s administrator will be able to control your account, including being able to access Content (defined below) and restrict or remove your access to the account.

This means: If you use your work email to sign up, your employer or organization can take control of your account. This means they can access your content and manage or remove your access to the service.

Governing Law & Jurisdiction

MEDIUM RISK
California law will govern these Terms except for its conflicts of laws principles. Except as provided in the dispute resolution section above, all claims arising out of or relating to these Terms will be brought exclusively in the federal or state courts of San Francisco, California.

This means: These terms are governed by California law. Any legal claims not covered by the arbitration agreement must be filed in courts in San Francisco, California. This can be inconvenient if you live elsewhere.

How to Leave

Delete your account

You can delete specific ChatGPT conversations, Saved Memories, or your entire account. Temporary Chats are automatically deleted within 30 days.

Data retention

After you delete data, it's removed from their systems within 30 days. However, they retain data for longer if legally required, for security/safety reasons (e.g., usage policy violations, fraud prevention), for financial record-keeping, or to maintain audit records of your deletion requests. De-identified data may be retained indefinitely.

Data portability

Yes, you can export your ChatGPT history and data from your account's data controls.

Overall exit difficulty:MEDIUM RISK
Red Flags

User Content for Model Training (Default)

By default, the content you provide (prompts, uploads) is used to train and improve OpenAI's models. While there's an opt-out, many users might not realize this or actively seek out the setting. This means your private conversations or uploaded data could contribute to the AI's general knowledge.

Industry context: This is a common practice for AI companies to improve their models, but the default opt-in nature, even with an opt-out, is a significant data use. Some competitors offer opt-out as default or more prominent controls.

Mandatory Arbitration and Class Action Waiver

These clauses force you to resolve disputes individually through arbitration, preventing you from suing OpenAI in court or joining a class-action lawsuit. This significantly limits your legal options and makes it harder to seek redress for widespread issues.

Industry context: This is a common, but highly user-unfriendly, practice among large tech companies to avoid costly litigation and class actions. It's worse than normal for services that handle sensitive personal data.

Broad Data Retention After Deletion

Even if you delete your account or specific data, OpenAI states they may retain it for longer periods for 'legitimate security, safety, or legal reasons,' including usage policy violations, legal subpoenas, and financial records. This means 'deletion' isn't always a complete erasure.

Industry context: While some retention for legal/security is standard, the breadth of reasons and potential duration can be more extensive than some privacy-focused services. It's important to understand that your data may persist in their systems for a while.

Organizational Account Control

If you use a work email, your employer can gain full control over your personal OpenAI account, including accessing your content. This erases any expectation of privacy for your interactions if you're using a company-provided email address.

Industry context: This is common for enterprise-level services where the organization pays for and manages accounts, but it's a critical point for individual users to be aware of if they use a work email for personal use of the service.

Limitation of Liability

OpenAI severely limits its financial responsibility for any damages you might incur from using their services, capping it at a very low amount ($100 or 12 months' payment). This means if their service causes you significant harm, your ability to recover losses is extremely restricted.

Industry context: This is a standard clause in many online services' terms, but the low cap can be particularly concerning for a service that generates content and could potentially provide inaccurate or harmful information.

The Bottom Line

OpenAI's policies are fairly transparent, clearly outlining what data they collect and how they use it, including for model training by default (with an opt-out). However, the mandatory arbitration, class action waiver, and broad data retention policies significantly favor the company. If you use a work email, be aware your employer could access your account and content. Always consider opting out of data use for model training and be mindful of the content you share. Consult a qualified attorney for legal advice.

This analysis is for educational purposes only. FinePrint is not a law firm. AI analysis may contain errors or miss important nuances. For legal decisions, consult a licensed attorney.
This analysis is based on publicly available Terms of Service and Privacy Policy as of the analysis date. Terms may have changed since this analysis. Always check the current version.

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