Old Navy Faces Lawsuit Over AI Chatbot’s Alleged Illegal Wiretapping


In a case that could set a precedent for AI and privacy laws, Gap’s Old Navy brand is currently embroiled in a lawsuit alleging illegal wiretapping by its AI chatbot. This lawsuit, filed in the Central District of California, accuses the chatbot of recording and storing conversations without user consent, raising significant questions about consumer privacy in the age of AI.

Key Takeaways:

  • Old Navy is facing a lawsuit alleging that its AI chatbot engages in illegal wiretapping.
  • The chatbot is accused of recording and storing conversations without user consent.
  • The lawsuit could have implications for AI and privacy laws.

The Case at Hand

The lawsuit alleges that Old Navy’s chatbot convincingly impersonates a human customer service representative, encouraging consumers to share personal information. The plaintiff claims to have communicated with what they believed was a human representative, unaware that the chatbot was recording the entire conversation, including keystrokes and mouse clicks.

Broader Implications for AI and Privacy

This case opens a legal can of worms over consumer privacy, especially as companies increasingly adopt generative AI-powered chatbots. The lawsuit highlights the need for clear policies regulating the use and impact of generative AI, balancing individual rights and fostering AI innovation.

AI’s Data Dependency

Generative AI relies on massive amounts of underlying data, including copyrighted material, to operate. This reliance has already led to numerous lawsuits by writers and others who found their material used without permission to train AI. The Old Navy case adds another layer to this complex issue, focusing on consumer privacy.

Potential Outcomes

Experts suggest that a likely outcome of the lawsuit is that companies like Old Navy will add warning labels to inform customers that their data might be recorded and shared for training purposes. However, the case also underscores the need for more robust privacy disclosures and liability considerations as AI becomes more integrated into our daily lives.

US Lagging in AI Regulations

The lawsuit is based on a wiretapping law from the 1960s, highlighting how the U.S. lags behind Europe and Canada in AI and online interaction regulations. With no comprehensive federal online privacy legislation, companies have been free to advance without mandatory privacy protections.


As AI continues to evolve and find its way into various aspects of our lives, cases like the Old Navy lawsuit serve as a reminder of the urgent need for updated regulations and ethical considerations. The outcome of this case could have far-reaching implications for AI, privacy laws, and consumer rights in the digital age.

Jonathan Browne
Jonathan Brownehttps://livy.ai
Jonathan Browne is the CEO and Founder of Livy.AI

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