Reddit—FTC launched inquiry into Reddit's AI data licensing practices ahead of IPO
The Federal Trade Commission launched a non-public inquiry into Reddit's sale, licensing, and sharing of user-generated content with third parties to train AI models. The inquiry was disclosed on March 14, 2024, just days before Reddit's planned IPO. Reddit stated it was 'not surprised' by the FTC's interest given the novel nature of these agreements.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Consumer Protection | -against | secondary | -0.50 |
| User Privacy | -against | primary | -1.00 |
| Overall incident score = | -0.498 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)× agency (reactive ×0.75)
Evidence (1 signal)
FTC sent inquiry letter to Reddit about AI data licensing practices
The FTC sent a letter to Reddit on March 14, 2024, stating it was conducting a non-public inquiry focused on Reddit's sale, licensing, or sharing of user-generated content with third parties to train AI models. Reddit disclosed the inquiry in its regulatory filings ahead of its IPO.