In a major development, Microsoft's LinkedIn is facing legal action from its Premium customers who allege the professional networking platform shared their private messages with third parties without permission to train AI models.
A class-action lawsuit filed in San Jose, California federal court claims LinkedIn quietly introduced changes to its data sharing practices. The complaint states that in August, the platform added a privacy setting allowing users to control their personal data sharing. However, the platform then updated its privacy policy in September 2023, indicating user data could be used for AI model training.
The lawsuit highlights that LinkedIn's FAQ page noted that opting out would not affect any AI training that had already taken place. The plaintiffs argue this was an attempt to "cover its tracks" and suggests LinkedIn knew it was violating customer privacy agreements.
The legal action represents LinkedIn Premium users who exchanged InMail messages before September 18, whose private information was allegedly shared with third parties for AI training purposes. The plaintiffs are seeking damages for breach of contract, violations of California's unfair competition law, and $1,000 per person for violations of the federal Stored Communications Act.
In response to these allegations, LinkedIn issued a statement dismissing the claims as "false" and "without merit."
The timing of the lawsuit coincides with the announcement of a major AI infrastructure joint venture involving Microsoft-backed OpenAI, Oracle, and SoftBank, with potential investments reaching $500 billion.
The case, filed as De La Torre v. LinkedIn Corp in the Northern District of California, continues to develop as both parties prepare their legal arguments.