SEC charges YouPlus and CEO with defrauding investors
The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.
- Company involved
- YouPlus
- AI system involved
- YouPlus machine-learning tool
1 source article · read the reporting →
Insurer drops California homeowner after aerial photo analysis
Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.
2 source articles · read the reporting →
Brookdale Senior Living algorithm blamed for understaffing at assisted-living facilities
Managers at Brookdale Senior Living, the largest assisted-living chain in the US, allege that an algorithm called 'Service Alignment' set staffing levels so low that facilities were dangerously short-handed. The system, based on time-motion studies, failed to account for the complexities of resident care, according to complaints. Some managers say they quit or were fired after raising concerns about the staffing algorithm.
- Company involved
- Brookdale Senior Living
- AI system involved
- Service Alignment
1 source article · read the reporting →
iTutorGroup to Pay $365,000 to Settle EEOC Discriminatory Hiring Suit
The system automatically rejected tutor applicants aged 55+ (women) or 60+ (men).
- Company involved
- iTutorGroup
1 source article · read the reporting →
Whole Foods uses heat map to track unionization risk at stores
Whole Foods, owned by Amazon, is reportedly using a heat map that scores stores on their risk of unionization. The system analyses metrics including local union membership, NLRB charges, employee compensation, diversity, and internal sentiment surveys. The tool is used to monitor and potentially prevent union organising efforts. Whole Foods stated it prefers a direct relationship with employees, while Amazon has a history of aggressively combating unionization.
- Company involved
- Whole Foods Market
1 source article · read the reporting →
Clearview AI settles with ACLU over facial recognition database sales
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition database
8 source articles · read the reporting →
Content Giants Sue Unauthorized AI, Invest in Paid Partners - 조선일보
Generated images of copyrighted characters without authorization, affecting Disney and NBCUniversal's intellectual property rights.
- Company involved
- Midjourney
- AI system involved
- Midjourney
1 source article · read the reporting →
Zillow faces securities class action over Zillow Offers wind-down
Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.
- Company involved
- Zillow Group, Inc.
- AI system involved
- Zillow Offers
10 source articles · read the reporting →
$335,000 and counting: Another WA local government settles Flock lawsuit - Cascadia Daily
The system captured images of vehicles and license plates, and the county failed to release them to a public records requester.
- Company involved
- Snohomish County
- AI system involved
- Flock Safety cameras
1 source article · read the reporting →
Instacart used AI to charge different customers different prices for same items
Instacart, a grocery delivery company, was found to have used AI pricing algorithms to charge some customers up to 23% more than others for identical products at the same location. Research by Groundwork Collaborative, Consumer Reports, and More Perfect Union, based on data from 437 shoppers, revealed price fluctuations averaging 7%. Instacart acquired the AI firm Eversight in 2022 and began experimenting with dynamic pricing. The company stated that the tests have ended.
- Company involved
- Instacart
6 source articles · read the reporting →
Sheriff's investigator accused of spying on ex using Flock cameras - USA Today
An Albany County Sheriff's Office investigator is accused of using Flock license-plate cameras to track the vehicles of five people, including the investigator's ex-girlfriend, without a lawful purpose.
- Company involved
- Albany County Sheriff's Office
- AI system involved
- Flock Safety
1 source article · read the reporting →
Ring's AI pet-search feature draws privacy backlash after Super Bowl ad
Ring, an Amazon company, promoted its Search Party feature in a Super Bowl advertisement, saying its AI helps reunite dog owners with missing pets. Critics said the feature, which is enabled by default, turns Ring doorbells into a mass surveillance network and could easily be adapted to track people. Ring said it had reunited 99 dogs in the US in 90 days and that customers keep full control of their data.
- Company involved
- Ring
- AI system involved
- Search Party
5 source articles · read the reporting →
Hotel Guests Appeal Dismissal of Federal Price-Fixing Lawsuit Accusing Strip Casinos of Algorithmic Room Rate Collusion - Nevada Globe
Hotel guests allege that Las Vegas Strip casino operators used algorithmic pricing software that recommended inflated room rates, leading guests to pay supracompetitive prices. They are appealing the dismissal of their federal price-fixing suit.
- Company involved
- MGM Resorts International, Caesars Entertainment, Wynn Resorts, Treasure Island
- AI system involved
- Rainmaker Guestrev and Grouprev
1 source article · read the reporting →
Bumble and Match suspend Instagram ads after algorithm served explicit Reels content
According to The Wall Street Journal, Instagram's recommendation algorithm served sexually explicit and child-sexualising Reels content to test accounts that followed young gymnasts, cheerleaders and influencers. The outlet found that ads for major brands, including Match and Bumble, appeared alongside the videos. Following the report, Bumble and Match said they were suspending their advertising on Instagram.
- Company involved
- Instagram
- AI system involved
- Instagram's Reels recommendation algorithm
9 source articles · read the reporting →
Google's Waze App Blocks Wildfire Escape Route in Los Gatos, Residents Say
Residents of historic neighborhoods in Los Gatos, California, allege that Google's Waze navigation app is routing heavy beach traffic through their streets, blocking the only wildfire evacuation route. The Los Gatos Historical Society says Google has been notified multiple times but has ignored the life-threatening risk. A U.S. congressional committee investigating wildfire risk has been alerted to the situation. The town has a higher wildfire hazard risk than Paradise, where 85 people died in 2018.
- Company involved
- Google
- AI system involved
- Waze
2 source articles · read the reporting →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
Where does SpaceXAI rank for air pollution in Shelby County? - WREG.com
The data center's operations emitted air pollutants affecting nearby residents
- Company involved
- SpaceXAI
- AI system involved
- Colossus 1
1 source article · read the reporting →
Flock seeks to have security researchers' map of Flock cameras taken down — unauthenticated flaw exposed 335,701 camera locations nationwide…
The system captured license plate data and vehicle locations of individuals passing the cameras.
- Company involved
- Flock Safety
- AI system involved
- Flock Safety cameras
1 source article · read the reporting →
Virginia homeowner says Amazon's data centre turned his quiet life into 'chaos'; now he's suing over nois - The Times…
The data centre construction caused noise, dust, flooding, brown water, vibrations, and traffic, disrupting the homeowner's property and business.
- Company involved
- Amazon
- AI system involved
- Northeast Creek Technology Campus
1 source article · read the reporting →
Expedia hit with antitrust class action over algorithm pricing scheme - Courthouse News
A class action alleges Expedia took part in an algorithmic pricing scheme that inflated hotel room prices for consumers booking through Expedia and other platforms.
- Company involved
- Expedia
1 source article · read the reporting →
$30M Equifax hard inquiry dispute class action settlement - Top Class Actions
A class action, settled for $30 million, alleged that Equifax automatically rejected consumers' disputes of hard inquiries on their credit reports, sending a form letter instead of investigating.
- Company involved
- Equifax Information Services LLC
1 source article · read the reporting →
Lawsuit Says UnitedHealth Used AI With a 90% Error Rate to Deny Care - Yahoo
Denied post-acute care coverage to elderly Medicare Advantage patients
- Company involved
- UnitedHealth Group
- AI system involved
- nH Predict
1 source article · read the reporting →
Expedia Accused of Using AI to Jack Up Hotel Room Rates - Bloomberg Law News
Set artificially inflated hotel room rates for consumers booking US hotel accommodations
- Company involved
- Expedia Group Inc.
1 source article · read the reporting →
NHTSA investigation PE24015: Rear-end Collisions Involving Zoox Vehicles
Automated driving system controlled vehicle braking and acceleration, leading to rear-end collisions with other road users
- Company involved
- Zoox
- AI system involved
- Zoox vehicle
1 source article · read the reporting →
