"The AGCM accepted binding commitments from all three chatbot providers, establishing a concrete benchmark for what 'adequate' hallucination transparency must look like in practice, and a 120-day compliance window before potential fines."
"The three cases were opened on the basis that the companies' AI chatbots had failed to inform users clearly, immediately, and intelligibly that their AI systems could generate inaccurate, misleading, or entirely fabricated content."
"This failure constituted a potentially unfair commercial practice under Articles 20, 21, and 22 of Italy's Consumer Code, because it prevented users from making informed decisions about whether to use the services."
"Non-compliance with the commitments within a 120-day window, however, would reopen the cases and expose each company to fines of up to approximately $11.6 million."
The AGCM closed investigations into three AI chatbot providers after they accepted binding commitments to enhance user warnings about AI hallucinations. The companies, DeepSeek, Mistral AI, and Scaleup Yazilim, were found to have inadequately informed users about the risks of inaccurate content. This lack of transparency was deemed an unfair commercial practice under Italy's Consumer Code. The AGCM accepted the companies' proposals to address these concerns, but non-compliance within 120 days could lead to fines of up to $11.6 million.
Read at TNW | Government-Policy
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