LinkedIn Faces Lawsuit Over Alleged Customer Data Use for AI Training

LinkedIn, owned by Microsoft, has been hit with a proposed class action lawsuit accusing the platform of using private customer data for AI model training without proper consent. The lawsuit, filed on behalf of millions of LinkedIn Premium customers, claims the platform updated its privacy policy in September 2024 to allow data use for AI training, but users say they were not properly informed. While LinkedIn introduced an opt-out option last August, the updated policy clarified that opting out wouldn’t reverse prior data usage, sparking allegations that the company knowingly violated user privacy.

The lawsuit, filed in federal court in San Jose, California, specifically represents LinkedIn Premium customers who used the platform’s InMail feature and alleges violations of privacy and federal law, including the Stored Communications Act. Plaintiffs seek damages for breach of contract, violations of California’s unfair competition law, and statutory penalties of $1,000 per person for federal privacy violations.

This legal challenge comes as LinkedIn faces growing scrutiny over how it handles customer data amidst the broader adoption of generative AI technologies. Microsoft, which owns LinkedIn, has not commented on the lawsuit. The case unfolds amid significant AI investments, including a new $500 billion partnership involving Microsoft, OpenAI, Oracle, and SoftBank to develop AI infrastructure in the United States.