Class-Action Lawsuit Accuses Otter.ai of Secretly Recording Private Meetings Without Consent, Raising Major Privacy Concerns

A class-action lawsuit accuses Otter ai of secretly recording private work conversations without user consent. 

The California-based service uses artificial intelligence to generate speech-to-text transcriptions in real-time. It is popular for meetings on Zoom, Google Meet, and Teams, and allegedly captures conversations secretly to train its systems. The lawsuit, filed by Justin Brewer, claims Otter’s practices deceive users and invade privacy, especially since it often joins meetings automatically without participant approval. 

Otter states it anonymizes data before use, but the lawsuit questions the effectiveness of this process. With over 25 million users and more than a billion meetings recorded, privacy concerns are mounting. Some users have shared stories about Otter's automated recording tools backfiring. For example, last year an engineer said Otter had recorded a Zoom meeting with investors, then shared with him a transcription of the chat including "intimate, confidential details" about a business discussed after he had left the meeting. It ended up killing a deal.

Otter.ai, a California-based AI speech-to-text transcription service, is facing a federal class-action lawsuit alleging it secretly recorded private virtual meetings without obtaining consent from all participants, violating state and federal privacy laws. The lawsuit, filed by Justin Brewer in the U.S. District Court for the Northern District of California, claims Otter’s transcription tool, Otter Notetaker (sometimes also called Otter Notebook), has covertly captured confidential conversations, resulting in a “severe invasion” of privacy.

Key Allegations and Issues

- Automatic, Unannounced Recording: Otter’s Notetaker bot can join meetings on Zoom, Google Meet, and Microsoft Teams, but the lawsuit asserts it does not routinely seek permission from or notify all participants, especially non-users, before recording. Often, only the meeting host may be prompted to approve, leaving others unaware of the recording.

- Use of Recordings for AI Training: The complaint claims Otter uses these transcriptions to train its machine learning models, providing commercial benefits while participants remain uninformed. Otter’s privacy policy states it “de-identifies” or anonymizes data, but the effectiveness of this process is challenged by the lawsuit, which notes studies questioning whether confidential details can truly be anonymized and cites lack of transparency about the process.

- Damages to Users:** Multiple reports detail situations where Otter inadvertently captured and shared confidential information. Examples include a Zoom meeting with investors being recorded and transcribed—including sensitive business details—after the meeting’s organizer had left, ultimately impacting business deals. Users and privacy advocates have raised alarms, especially over the tool’s tendency to join meetings automatically when linked to calendar invites.

- Legal Standing: The case cites both the federal Electronic Communications Privacy Act and the California Invasion of Privacy Act, noting California’s strict two-party consent laws. Plaintiffs are seeking damages and changes to Otter’s user consent mechanisms.

Otter’s Response

Otter.ai contends that it obtains “explicit permission” via a user agreement, which includes a consent checkbox for those scheduling meetings. However, critics argue this does not adequately notify or protect non-users or other meeting participants, many of whom may be unaware their conversations are being recorded and used for AI training.

Broader Implications

Otter.ai’s widespread adoption—over 25 million users and 1 billion meetings processed—heightens concern about privacy risks and the legal precedent the case might set for other AI-driven meetings and transcription tools[1][2]. Public sentiment, especially on social media, has been sharply negative, with many users and experts expressing fear that such technologies erode trust in virtual communications and workplace confidentiality.

The Otter.ai lawsuit highlights urgent issues around transparency, consent, and AI-driven data collection. As courts determine Otter’s liability, their decisions could redefine privacy standards for AI meeting bots, requiring stronger protections and clearer notifications for all parties involved in virtual meetings.

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