Luka Inc. – €5,000,000 Fine (Italy, 2025)

The Italian DPA imposed a fine of EUR 5,000,000 on Luka Inc. The developer created a chatbot called Replika with a written and voice interface. It is based on a generative AI system, specifically an LLM model, that is constantly fed and improved by user interactions. Replika is intended to be a 'virtual companion' that improves users' moods and emotional well-being by helping them understand their own psyche. Replika can be set up as a friend, therapist, romantic partner, or mentor. The controller failed to demonstrate a valid legal basis for its data processing and failed to provide sufficient information on data processing in its privacy policy. Additionally, the controller failed to adopt appropriate measures to protect personal data collected from children and implement an age verification mechanism. The total sum of the fine can be reduced by 50% if paid within sixty days.