Italian Data Protection Authority Sanctions Luka Inc. Over Chatbot Data Practices

In a significant development for data protection professionals, the Italian Data Protection Authority (DPA) has imposed a €5 million fine on Luka Inc., the US-based company responsible for managing the chatbot Replika. This decision highlights ongoing concerns about the data handling practices of generative AI systems and underscores the importance of robust compliance mechanisms.

Insights for Data Protection Professionals:

– Legal Foundations and Compliance: The investigation by the DPA unveiled that Luka Inc. failed to establish a clear legal basis for processing personal data through Replika as required by law, illustrating a critical area where data protection experts must ensure thorough compliance.

– Privacy Policy Deficiencies: Luka’s privacy policy was found lacking, pinpointing the necessity for comprehensive privacy policies that address all necessary details to provide transparency to users.

– Age Verification Challenges: Despite claiming to exclude minors, Luka did not implement effective age verification measures, a shortcoming that raises flags related to child protection—a priority area for privacy and data protection experts.

Implications and Actions:

The DPA’s decision mandates that Luka Inc. align its data processing practices with GDPR requirements. Among these requirements is the implementation of thorough risk assessments and protective measures throughout the AI model’s lifecycle, including during its development and training phases. Data protection professionals will recognize the significance of such actions as they endeavor to safeguard personal data across AI-driven platforms.

The authority’s demand for detailed clarifications from Luka stresses the importance of transparency and accountability, elements that should form the cornerstone of any data processing operation. Privacy experts are reminded to consider measures like anonymization and pseudonymization to enhance data protection efforts.

The case of Replika serves as a compelling reminder for the industry to uphold stricter standards in AI implementations, addressing both the ethical and legal dimensions of user data protection.

For further information, visit the original source link: [Garante Privacy](https://www.garanteprivacy.it/home/docweb/-/docweb-display/docweb/10132048).