Microsoft-owned LinkedIn is facing a proposed class action lawsuit over allegations that it disclosed private customer information to third parties without their consent to train generative artificial intelligence (AI) models.
This legal battle has been filed on behalf of millions of LinkedIn Premium users who claim their data was used in violation of LinkedIn’s privacy promises.
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Details of the Lawsuit
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that LinkedIn quietly introduced a privacy setting in August 2024, allowing users to opt out of data sharing. However, the platform later updated its privacy policy on September 18, 2024, stating that users’ data could still be used for AI training despite opting out.
The plaintiffs argue that LinkedIn attempted to “cover its tracks” by subtly amending its privacy terms, stating in its FAQs that opting out “does not affect training that has already taken place.”
The case is De La Torre v. LinkedIn Corp (No. 25-00709) and seeks:
- Unspecified damages for breach of contract and violations of California’s unfair competition law.
- $1,000 per person for violations of the federal Stored Communications Act.
LinkedIn’s Response
LinkedIn has dismissed the allegations, stating, “These are false claims with no merit.”
A lawyer representing the plaintiffs has yet to provide additional comments.
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Broader Implications
The lawsuit comes amid growing scrutiny of how tech companies handle user data, particularly in training AI models. It also coincides with the announcement of a $500 billion AI infrastructure venture involving Microsoft-backed OpenAI, Oracle, and SoftBank, spearheaded by former U.S. President Donald Trump.
As this case unfolds, it underscores the critical importance of transparency and ethical practices in managing user data, particularly in the fast-evolving field of artificial intelligence.
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