Otter.ai, the popular AI-powered transcription service, is facing a class-action lawsuit after allegations surfaced that its assistant, Otter Notebook, was secretly recording virtual meetings without the knowledge or consent of all participants. Filed in the Northern District of California, the complaint argues that although Otter’s privacy policy suggests users must actively grant permission, in practice the tool often joins meetings unnoticed, capturing conversations on platforms like Zoom, Google Meet, and Microsoft Teams. The lawsuit, brought by plaintiff Justin Brewer, raises questions about whether the company’s practices violate state and federal wiretap and privacy laws, especially given that the recordings may also be used to train Otter’s AI models.
With more than 25 million users and over a billion meetings transcribed since its launch, the case has the potential to set a significant precedent for how AI tools handle consent and data privacy in professional settings. The plaintiffs argue that participants are unknowingly becoming sources of training data, raising broader concerns about workplace surveillance and the protection of sensitive information. If the case moves forward, Otter.ai could be forced to overhaul its policies around transparency and user notification, sparking a wider industry reckoning over how AI companies balance innovation with privacy rights.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
