LinkedIn Faces Lawsuit Over Alleged Misuse of Customer Data for AI Training

LinkedIn, the business-oriented social media platform owned by Microsoft, is facing legal action after Premium customers accused the company of sharing their private messages with third parties without consent to train generative artificial intelligence (AI) models. The proposed class-action lawsuit was filed on Tuesday night in federal court in San Jose, representing millions of LinkedIn Premium subscribers.

According to Reuters, the complaint highlights a privacy setting introduced in August 2024, allowing users to enable or disable data sharing. However, plaintiffs allege that LinkedIn updated its privacy policy a month later, on September 18, 2024, to specify that customer data could be used for training AI. This update reportedly included a “Frequently Asked Questions” section stating that opting out would not impact data already used for AI training.

The lawsuit accuses LinkedIn of attempting to “cover its tracks,” claiming the platform was aware of potential privacy violations while it publicly pledged to use personal data only for platform improvement. The complaint argues that these actions were designed to minimize legal and public backlash.

Legal and Financial Stakes

Filed on behalf of Premium customers who exchanged private InMail messages before the policy change, the lawsuit seeks damages for breach of contract and violations of California’s unfair competition law. Additionally, it demands $1,000 per person under the federal Stored Communications Act.

As reported by Reuters, the legal action underscores growing concerns about how large tech companies utilize user data to develop AI technologies. Microsoft, LinkedIn’s parent company, has not yet issued a response to the allegations. A lawyer for the plaintiffs declined to provide further comment.

Broader Context

The lawsuit coincided with significant AI-related news. Just hours earlier, former U.S. President Donald Trump announced a partnership involving OpenAI, Oracle, and SoftBank, with plans for a $500 billion investment in AI infrastructure in the United States.

Source: Reuters