Shipt's new V2 algorithm reduces pay for 41% of workers, study finds
A study by MIT Media Lab and Coworker.org found that Shipt's new V2 payment algorithm reduced pay for 41% of workers by an average of 11% per shop. The algorithm, rolled out in September 2020, replaced a transparent payment system with a black-box model. Workers pooled data to analyze the impact, revealing uneven distribution of earnings.
- Company involved
- Shipt
- AI system involved
- V2
10 source articles · read the reporting →
Allstate's proposed retention model charged big spenders more in Maryland
Allstate proposed an auto insurance rate adjustment plan in Maryland using a retention model algorithm that varied premium changes based on existing premiums. The algorithm would have increased rates up to 20% for customers already paying the highest premiums while capping increases at 5% for others, and would have denied meaningful discounts to thousands owed reductions. The Maryland Insurance Administration rejected the plan as discriminatory, but Allstate claims it was withdrawn and has continued proposing similar models elsewhere. The proposal never took effect in Maryland.
- Company involved
- Allstate Corporation
- AI system involved
- retention model
9 source articles · read the reporting →
Study finds Italian car insurers charge more based on birthplace
A study by the Universities of Padua, Udine and Carnegie Mellon found that Italian car insurers, including Genertel, Mps, Quixa and Con.Te, use birthplace and citizenship in pricing algorithms, charging some drivers over €1,000 more. The practice was ruled against in a 2018 decree involving Linear, but the study says it continues. The companies contacted denied or explained the findings.
- Company involved
- Genertel, Mps, Quixa, Con.Te
8 source articles · read the reporting →
Nevada's AI grad score model cuts funding for low-income students
Nevada replaced its income-based school funding formula with a machine learning model developed by Infinite Campus that generates a 'grad score' for each student. The model reduced the number of students eligible for supplemental funding from 288,000 to 63,000, disproportionately affecting low-income students. Critics argue the model lacks transparency and de-emphasizes economic status, potentially leaving many high-poverty schools underfunded.
- Company involved
- Nevada Department of Education
- AI system involved
- Grad score model
7 source articles · read the reporting →
Uber algorithm reinforced gender pay gap in compensation offers to new hires
Uber used an algorithm to determine compensation offers for new hires, allegedly paying women less than men for similar roles. The algorithm was designed to protect existing shareholders and save money, but it reinforced existing gender pay gaps. The system is now being altered, according to The Information.
- Company involved
- Uber
7 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 →
Amazon sellers lose thousands after RepricerExpress pricing glitch
A software glitch in RepricerExpress's automated repricing system caused products sold by Amazon sellers to be priced at 1p, leading to significant financial losses for the sellers. RepricerExpress apologised but did not offer compensation, while Amazon said it had reached out to affected sellers but many reported no response. Some sellers have instructed lawyers to take legal action against RepricerExpress and Amazon.
- Company involved
- RepricerExpress
- AI system involved
- RepricerExpress
10 source articles · read the reporting →
Bruce Springsteen addresses Ticketmaster dynamic pricing outrage
Bruce Springsteen addressed fan outrage over Ticketmaster's dynamic pricing for his 2023 tour, which led to ticket prices skyrocketing up to $5,000. Springsteen said he told his team to do what other artists do and that most tickets were affordable. He offered refunds to fans who complained.
- Company involved
- Ticketmaster
- AI system involved
- Ticketmaster dynamic pricing
9 source articles · read the reporting →
UnitedHealth used ALERT algorithm to limit mental health coverage, regulators found
ProPublica reports that UnitedHealth Group's Optum subsidiary used the ALERT algorithm to flag mental health patients and therapists as outliers, leading to therapy coverage denials. Regulators in California, Massachusetts and New York alleged this breached the federal Mental Health Parity and Addiction Equity Act, and UnitedHealth agreed to restrict the system in those jurisdictions. The company denies wrongdoing and says its programmes are compliant. Affected patients, including Medicaid enrollees, were left to pay out-of-pocket or go without care.
- Company involved
- UnitedHealth Group
- AI system involved
- ALERT
5 source articles · read the reporting →
EviCore denied heart catheterization for patient using algorithm
In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.
- Company involved
- EviCore (a Cigna company)
- AI system involved
- the dial
6 source articles · read the reporting →
EvenUp AI errors in personal injury demand letters lead to scrutiny
EvenUp, a legal tech startup valued at $1 billion, uses AI to draft personal injury demand letters. Former employees revealed that the AI system frequently makes errors, including missing injuries and fabricating medical conditions. The company defends its hybrid approach with human oversight, but critics allege overpromised AI capabilities.
- Company involved
- EvenUp
6 source articles · read the reporting →
Uber and Amazon algorithms pay different wages for same work
A study by law professor Veena Dubal alleges that Uber and Amazon use AI algorithms to offer different pay rates to gig workers doing identical work. The algorithms are said to calculate the lowest wage a driver will accept based on personal data. Uber denies tailoring individual fares, and the California Labor Commission's lawsuit against Uber and Lyft is ongoing.
- Company involved
- Uber
10 source articles · read the reporting →
Eventbrite algorithm recommended illegal opioid sales to addiction recovery seekers
Eventbrite's recommendation algorithm promoted thousands of listings selling illegal prescription drugs like oxycodone and Xanax alongside addiction recovery events. The listings, which appeared in search results and related events, directed users to unlicensed online pharmacies. Eventbrite acknowledged the issue and removed the listings after WIRED alerted them.
- Company involved
- Eventbrite
- AI system involved
- Eventbrite recommendation algorithm
4 source articles · read the reporting →
Uber surge pricing capped by NSW government after commuters overcharged during rail shutdown
During a city rail network shutdown in March 2023, Uber's surge pricing algorithm charged commuters hundreds of dollars above normal fares. One passenger was charged $500 for a trip from Sydney to Mount Annan that usually costs $40. Uber apologized and reimbursed affected customers. The NSW government then made an agreement with Uber to cap surge pricing during public transport disruptions.
- Company involved
- Uber
- AI system involved
- Uber surge pricing
6 source articles · read the reporting →
Uber users angry over New Year's Eve surge pricing in Australia
Uber's dynamic pricing algorithm increased fares by up to 800% on New Year's Eve in Australia, leaving some users with bills hundreds of dollars above normal. Skye Shanahan was charged $720 for a trip that usually costs $100, and Kris Keen paid $330 for a $40 ride. Uber defended the surge pricing, saying it encourages more drivers, and offered $180 credit to Shanahan.
- Company involved
- Uber
- AI system involved
- surge pricing
10 source articles · read the reporting →
Delta uses AI from Fetcherr for domestic ticket pricing
Delta Air Lines is using generative AI from Fetcherr to determine some domestic flight prices, currently covering 3% of its network with plans to reach 20% by end of 2025. Democratic senators expressed concern that the AI could be used for individualized pricing based on personal data, leading to higher fares. Delta denies using personal data in pricing and states it complies with regulations. No actual harm has been reported.
- Company involved
- Delta Air Lines
- AI system involved
- Fetcherr
8 source articles · read the reporting →
GMB members report declining earnings since Uber introduced dynamic pricing
GMB Union has welcomed a report into Uber's dynamic pricing that appears to show it benefits Uber more than drivers. GMB members have reported declining earnings since the introduction of dynamic pricing. The union has called for greater transparency around earnings in the gig economy and will review the report before consulting members on next steps.
- Company involved
- Uber
- AI system involved
- dynamic pricing
8 source articles · read the reporting →
Kroger's digital price tags investigated for surge pricing concerns
U.S. Senators Elizabeth Warren and Bob Casey sent a letter to Kroger CEO Rodney McMullen raising concerns about the company's use of Electronic Shelving Labels (ESLs) for dynamic pricing. The system, called EDGE shelf and developed with Microsoft, can change prices based on time of day or weather, potentially leading to price gouging. The senators warned that this could harm consumers by increasing grocery costs and requested information from Kroger about its use of the technology.
- Company involved
- Kroger
- AI system involved
- EDGE shelf (Electronic Shelving Labels)
10 source articles · read the reporting →
Uber caps surge pricing at 2.8x during New York blizzard
During a major snowstorm in New York City in January 2015, Uber capped its surge pricing at 2.8 times the normal fare after facing criticism for price gouging during Hurricane Sandy. The company announced the cap in an email to users and said it would donate proceeds to the American Red Cross. The policy was in line with an agreement with the New York Attorney General to prevent massive price surges during emergencies.
- Company involved
- Uber
- AI system involved
- Uber surge pricing
5 source articles · read the reporting →
Uber and Lyft surge pricing after NYC subway shooting leads to refunds
After a shooting on a Brooklyn subway train, Uber and Lyft's automated surge pricing algorithms increased fares for riders in the area. Both companies later disabled surge pricing and stated they would refund customers who were overcharged. The incident highlights the risk of automated pricing systems that cannot account for emergency contexts.
- Company involved
- Uber and Lyft
6 source articles · read the reporting →
Ticketmaster dynamic pricing inflates Oasis reunion tour ticket prices
Ticketmaster's dynamic pricing system caused ticket prices for Oasis's reunion tour to surge from around £135 to over £488 for some fans. Fans reported paying double or triple the face value for standing tickets in Dublin and Cardiff. The system, which adjusts prices based on demand, has been criticised by fans on social media. Ticketmaster has not commented on the incident.
- Company involved
- Ticketmaster
9 source articles · read the reporting →
Edinburgh Airport AI trial gives passengers different parking prices
Edinburgh Airport admitted it was trialling an AI system that randomly set higher or lower parking prices for online bookers, with customers receiving different quotes for the same service. The Scottish Passenger Agents Association called for the trial to be conducted in controlled 'lab' conditions rather than on the public. The airport said the AI's pricing closely matched staff-set prices and the findings would evaluate whether to adopt the system.
- Company involved
- Edinburgh Airport
- AI system involved
- AI trial for parking pricing
3 source articles · read the reporting →
Dynamic pricing raises Royal Opera ticket price to £415
The Royal Opera House used dynamic pricing to set ticket prices for Wagner's Siegfried. The price reached £415, among the highest for any performing arts event in British history. The algorithm increased prices based on demand, affecting ticket buyers.
- Company involved
- Royal Opera House
5 source articles · read the reporting →
Amazon overcharged school districts and local governments using opaque pricing algorithms
Senator Elizabeth Warren pressed Amazon CEO over allegations that Amazon Business uses opaque pricing algorithms and misleading contracts to overcharge school districts and local governments. An investigation found that Amazon charged some buyers up to three times as much for identical products, such as a 12-pack of Sharpie markers. The pricing is algorithm-driven and dynamic, and Amazon's group purchasing contracts with OMNIA Partners sidestep traditional competitive bidding. The overcharging is ongoing and has not been resolved.
- Company involved
- Amazon
- AI system involved
- Amazon Business
6 source articles · read the reporting →
