Where automated decisions went wrong

Uber fined €825 million for suspending drivers through algorithms without human review - MediaNama

Uber fined €825 million for suspending drivers through algorithms without human review MediaNama

1 source article · read the reporting →

Uber set for €825mn Dutch fine over automating driver suspensions - Financial Times

The system automatically suspended Uber drivers.

Company involved

Uber

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Meta accused of profiting from billions of scam ads - ICLG

The AI system generated and targeted scam advertisements to users, causing potential financial harm.

Company involved

Meta Platforms

AI system involved

Advantage+

1 source article · read the reporting →

In-house counsel group accuses rival of training AI on its materials - Reuters

In-house counsel group accuses rival of training AI on its materials Reuters

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AI Scammers Clone Exante Broker, Use JPMorgan Account to Defraud US Victim

Scammers used generative AI to create a fake clone of the brokerage firm Exante, including a replicated trading platform and AI-generated passports. They opened a real JPMorgan Chase bank account using a US address and tricked at least one US victim into transferring funds. Exante, which does not serve US clients, discovered the scam when the victim was registered on its real platform and reported the incident to the FBI, SEC, CFTC, and other authorities. The scammers remain unidentified, and the victim's funds have not been recovered.

2 source articles · read the reporting →

Meta Scraped User Photos for Secret Smart-Glasses Tech, Class Action Claims - The SOFX Report

Meta harvested user photographs and created biometric faceprints to enable a smart-glasses system that could identify strangers in public without consent.

Company involved

Meta Platforms, Inc.

AI system involved

NameTag

1 source article · read the reporting →

3rd Circuit Revives Hotel Price-Fixing Suit Over Cendyn Rainmaker Algorithm

A group of hotel guests allege that Caesars Entertainment, Hard Rock, Borgata, and MGM conspired to fix room rates using Cendyn's Rainmaker algorithm. The algorithm allegedly recommended prices based on competitively-sensitive information shared among the casinos. The U.S. Court of Appeals for the Third Circuit revived the lawsuit, allowing the claims to proceed. The case is pending.

Company involved

Caesars Entertainment, Hard Rock, Borgata, MGM

AI system involved

Rainmaker

2 source articles · read the reporting →

Airbnb bans user for life over nine-year-old possession charge

Bethany Hallam, an Allegheny County councilmember, received a lifetime booking ban from Airbnb due to a possession charge from nine years prior. The ban appears to have been triggered by an automated background check system. Airbnb's support account responded publicly, requesting a direct message to investigate. Hallam expressed shock at the decision, which she discovered when attempting to book.

Company involved

Airbnb

6 source articles · read the reporting →

Australian Tours and Cruises AI sends tourists to non-existent Tasmanian hot springs

Australian Tours and Cruises used AI to generate travel articles for its Tasmania Tours website. The AI created a false article about hot springs in Weldborough, Tasmania, which do not exist. Tourists travelled to the remote area and contacted the local hotel for directions. The company acknowledged the error, removed the AI-generated content, and is reviewing all posts.

Company involved

Australian Tours and Cruises

1 source article · read the reporting →

DC attorney general sues 14 landlords over RealPage rent collusion

The Attorney General of Washington DC filed a lawsuit against 14 large landlords, alleging they used RealPage's YieldStar software to form “a District-wide housing cartel” that artificially inflated rents. The complaint claims RealPage's pricing algorithm used data supplied by the landlords and pressurised them to follow its rate recommendations, with one firm's internal presentation stating at least 95% compliance was expected. This alleged scheme caused residents to pay millions of dollars above fair market prices during a housing affordability crisis.

Company involved

Greystar Management Services

AI system involved

YieldStar

10 source articles · read the reporting →

Ryanair requires facial recognition for customers booking via online travel agents

noyb filed a complaint against Ryanair with the Spanish Data Protection Authority (AEPD) on 27 July 2023. A customer who booked a Ryanair flight through online travel agency eDreams was required to undergo a facial recognition verification process or go to the check-in counter more than two hours before departure. The customer was charged a small fee for the verification. Ryanair outsources the facial recognition to GetID. noyb alleges that the process violates GDPR because consent is not valid and the purpose is to discourage bookings through third-party agents.

Company involved

Ryanair

AI system involved

GetID

10 source articles · read the reporting →

Google AI directs traveller to scam customer service number

Alex Rivlin used Google to find a cruise company's customer service number while booking a shuttle for a European holiday. Google's AI surfaced a number that connected him to a knowledgeable-sounding representative, to whom he gave his credit card details. The number was a scam, representing a new AI-enabled twist on a long-running travel fraud. The article warns readers about this evolving threat.

Company involved

Google

AI system involved

Google AI Overviews

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Airbnb apologises after host used AI-doctored photos to claim fake damages

A London-based woman booked a Manhattan Airbnb for a 2.5-month stay but left early due to safety concerns. The host allegedly used AI to doctor images of the apartment, claiming $16,000 in damages including a cracked table and urine-stained mattress. Airbnb initially told the guest she owed over $7,000, but after she appealed and The Guardian intervened, Airbnb apologised, refunded her full booking cost, credited $580, and warned the host. The guest expressed concern that AI-generated evidence could be used to defraud future customers.

Company involved

Airbnb

3 source articles · read the reporting →

Xpeng Motors Fined for Collecting Customer Facial Images Without Consent

Xpeng Motors was fined 100,000 yuan by Shanghai's market regulation authority for collecting 431,623 facial images of customers without consent. The company used surveillance cameras with facial recognition from a third-party supplier, Ulucu, to analyze customer traffic. Xpeng stated it removed the devices and deleted all data before the inspection, and that no data was leaked or misused.

Company involved

Xpeng Motors

4 source articles · read the reporting →

Estée Lauder settles with make-up artists sacked by algorithm

Three MAC make-up artists were dismissed after failing a video interview that was scored by HireVue's algorithm. They appealed but received no clear explanation of how the system assessed them. Estée Lauder Companies settled the resulting legal challenge out of court. HireVue later discontinued the visual analysis component of its video interview platform.

Company involved

Estée Lauder Companies

AI system involved

HireVue

2 source articles · read the reporting →

Calcutta High Court questions ChatGPT exclusion of IndiaMART from search results

IndiaMART, an Indian B2B online marketplace, has petitioned the Calcutta High Court alleging that ChatGPT deliberately excluded it from search results. The company claims the exclusion was based on a United States Trade Representative report and caused loss of goodwill, reputation and commercial injury. The court observed there appeared to be selective discrimination but declined to pass interim orders before hearing the other side. The matter is listed for 13 January 2026.

Company involved

OpenAI

AI system involved

ChatGPT

4 source articles · read the reporting →

Google sues Chinese gang over AI-powered fraud targeting Americans

Google has filed a lawsuit against a Chinese cybercrime group called Outsider Enterprise, alleging it used Google's Gemini AI to create hundreds of fake websites impersonating companies and government services. The group allegedly sent millions of phishing messages to Android users, defrauding hundreds of thousands of Americans of millions of dollars. Google is coordinating with the FBI and wireless carriers to dismantle the network. The lawsuit, filed in the Southern District of New York, seeks an injunction to take down the operation.

Company involved

Outsider Enterprise

AI system involved

Gemini

3 source articles · read the reporting →

Booking.com still misleading consumers with false '1 room left' claims

Booking.com continues to display misleading scarcity messages on its hotel booking platform, claiming that only one room is left when in fact many more are available. Which? Travel found that five out of ten such claims were inaccurate, with one example showing 34 rooms still available at a London hotel. The Competition and Markets Authority had given Booking.com until 1 September 2019 to change its practices, but the platform has not fully complied. Booking.com says it has worked to implement the commitments agreed with the CMA.

Company involved

Booking.com

10 source articles · read the reporting →

UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego

A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.

Company involved

UDR, Inc.

AI system involved

RealPage YieldStar

1 source article · read the reporting →

EEOC sues iTutorGroup for automated rejection of older tutor applicants

The US Equal Employment Opportunity Commission (EEOC) alleges that tutoring provider iTutorGroup programmed its recruitment software automatically to reject female applicants aged 55 or older and male applicants aged 60 or older. More than 200 qualified US-based applicants were denied work in 2020. The EEOC has filed a lawsuit in the Eastern District of New York seeking back pay and damages.

Company involved

iTutorGroup

10 source articles · read the reporting →

Trivago loses Australian appeal over misleading hotel rate rankings

The Federal Court of Australia has dismissed Trivago's appeal against a ruling that the online travel company breached Australian consumer law. The court found that Trivago's website used an algorithm that gave prominence to hotels paying higher fees, so the most prominent offers were not always the cheapest for consumers. Consumers may therefore have paid more for rooms, and hotels lost direct bookings. The case returns to the Federal Court for consideration of penalties and other orders sought by the Australian Competition and Consumer Commission.

Company involved

Trivago

10 source articles · read the reporting →

Gradient app charges users unexpected subscription fees after free trial

The Gradient app, a celebrity lookalike app promoted by the Kardashians, charges users $19.99 per month after a three-day free trial without clear disclosure. Users complained on social media about unexpected credit card charges. The app's developer, Ticket to the Moon, has not addressed the billing complaints but denied collecting user data.

Company involved

Ticket to the Moon, Inc.

AI system involved

Gradient

9 source articles · read the reporting →

Meta sues Voyager Labs for scraping Facebook and Instagram user data

Meta filed a legal action against Voyager Labs, alleging that the company used fake accounts and proprietary software to scrape user data from Facebook and Instagram. The scraping collected profile information, posts, friends lists, photos and comments. Meta disabled Voyager's accounts and sought a permanent injunction. The case was settled in December 2024, with Voyager agreeing to a permanent injunction and monetary payment.

Company involved

Voyager Labs

10 source articles · read the reporting →

Airbnb smart-pricing algorithm increased racial revenue gap, study finds

A study by Carnegie Mellon University found that Airbnb's smart-pricing algorithm increased the revenue gap between White and Black hosts, even though it narrowed the gap among hosts who adopted it. The algorithm, which sets daily prices automatically, was adopted by fewer Black hosts, so its suggested prices were closer to the optimum for White hosts. The researchers said the tool could reduce racial disparities only if more Black hosts adopted it.

Company involved

Airbnb

AI system involved

Airbnb smart-pricing algorithm

10 source articles · read the reporting →