Transcription app Otter AI sued for recording meetings without user consent to train AI

Transcription app Otter AI sued for recording meetings without user consent to train AI

The AI-based note-taking and transcription platform Otter.ai is facing a class-action lawsuit alleging it illegally records and uses users’ voices to train its AI systems without user consent. The suit centers on Otter’s “Otter Notetaker” feature, which records meetings hosted on Google Meet, Zoom, and Microsoft Teams to generate transcriptions and summaries.

According to the complaint, Otter’s privacy policy and FAQ state that recorded voices are used for training speech recognition models. However, plaintiffs claim Otter records not only account holders but also non-account meeting participants, who are allegedly never asked to consent to having their voices recorded or subjected to machine learning processes. Plaintiffs argue these practices violate the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, and several California privacy laws.

The complaint notes that Otter has reached $100 million in annual revenue, suggesting the company profits from these practices without ensuring proper consent. The lawsuit anticipates Otter.ai may argue that account holders are responsible for informing guests of its data practices, but plaintiffs reject this, insisting the company itself must seek direct consent.

by Mauricio B. Holguin

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Otter.ai is an AI-driven audio transcription tool that transcribes voice conversations in real-time, catering to professionals, journalists, and students for meetings, interviews, and lectures. Rated 4 out of 5, its standout features include Voice Notes, Automatic Transcripts, and Speech Recognition. It serves as a reliable solution for capturing and organizing spoken content efficiently.

Comments

UserPower
2

Actually, the $100M is not annual revenue, but "annual recurring revenue" (aka ARR), a projection based on a single month revenue (last March in this case) x 12 (so they could have earned only $8M so far). ARR is the great way AI companies have found to spread big numbers (OpenAI and Anthropic being the best examples of it) without earning much (since it's revenue, not benefice), and now they're starting to use 7-days window to take usage spikes into account to produce even bigger numbers.

Gu