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OpenAI Scales Back Checkout Plans As ChatGPT Focus Shifts To Product Discovery

Revisiting The E-Commerce Experiment

OpenAI is changing how it approaches e-commerce within ChatGPT. The company has decided to step back from its direct purchase feature, moving away from plans to turn ChatGPT into a full shopping platform.

From Instant Checkout To Enhanced Discovery

Initially deployed as a tool for connecting consumers to vendors, OpenAI introduced a feature dubbed “Instant Checkout” last September. This early version prompted users to discuss product preferences with ChatGPT and even allowed them to add items to a virtual cart. However, the practical uptake did not meet expectations. 

Empowering Merchants To Innovate

Rather than forcing a one-size-fits-all checkout experience, OpenAI will now allow merchants to maintain full control over their own payment and checkout systems. This approach not only preserves a familiar shopping experience for consumers but also leverages merchant expertise. Retailers can continue employing ChatGPT through dedicated apps, routing users to their proprietary transactions on their websites. This strategic shift aligns with industry trends where brands, such as Stripe, continue to lead in creating tailored fintech solutions.

A Research Hub For Informed Purchases

Moving forward, OpenAI is positioning ChatGPT as a centralized hub of product information rather than a direct sales channel. The revamped platform is set to offer an enriched research experience, featuring detailed product comparisons complete with side-by-side images, prices, features, and user reviews. This transformation is underpinned by the Agentic Commerce Protocol (ACP), an open e-commerce standard developed in collaboration with financial technologies.

Looking Ahead

While early indications suggest that users were not predominantly leveraging ChatGPT for executing purchases, the transition to a research-centric tool may ultimately increase its utility in guiding informed buying decisions. OpenAI’s decision to prioritize product discovery reflects a commitment to providing value through clear, comparative data that empowers consumers to make smarter choices.

Meta’s $18 Billion Settlement Limits State Claims Over Children’s Data

Meta’s $18 billion settlement with attorneys general from 29 U.S. states includes a provision limiting future state claims over the company’s use of children’s data for age-assurance systems.

Under the agreement, Meta must develop, train and begin testing a system to identify users under 13 within a year of the settlement taking effect. The company already uses AI-based age-detection tools, although the agreement does not require the new system to use AI.

States Agree To Limits On Future Claims

The Children’s Online Privacy Protection Act (COPPA) generally restricts the collection and retention of personal data from children under 13. Under the settlement, the 29 state attorneys general agreed not to bring past, present or future claims under COPPA or similar state laws over the specified use of children’s data.

Meta will not be permitted to use information from users under 13 for advertising, marketing or algorithmic optimisation.

Federal Enforcement Remains Unclear

COPPA is primarily enforced by the Federal Trade Commission, which is not a party to the agreement. That leaves open the possibility of separate federal action over how Meta collects or uses children’s data.

Another issue is whether Meta can keep age-assurance data isolated from its other systems. An independent auditor will monitor compliance, but the settlement does not fully specify what data Meta can retain for training, how long it can be stored or whether derived insights can be used elsewhere.

Legal Risks Remain

Joshua Wurtzel, a partner at Schlam Stone & Dolan, said states could still pursue claims if Meta uses the data outside the settlement’s limits. Such cases could depend on how those limits are interpreted.

Peter Jackson, a data and intellectual property attorney at Greenberg Glusker, said the provision could “disincentivize future enforcement actions.”

The agreement gives Meta greater legal certainty around using children’s data for age assurance, but questions remain over federal enforcement, data retention and secondary use.

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