FinTech and traditional lenders discriminate against minority borrowers in mortgage pricing
A study of mortgage lending from 2012-2018 found that Latinx and African-American borrowers were charged higher interest rates than white borrowers with similar credit risk. FinTech algorithms reduced the disparity by 40% but did not eliminate it. The discrimination costs minority borrowers an estimated $765 million per year in extra interest.
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Ferris v. Amazon.com Services (N.D. Mississippi): AI-hallucinated content in court filing, Plaintiff ordered to pay Defendant’s reasonable costs related to…
The AI generated fabricated legal citations that were submitted to the court, affecting the defendant and the judicial process.
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RealPage's YieldStar algorithm pushes rents higher for tenants
RealPage's YieldStar algorithm uses private competitor data to recommend rent increases for apartment units. Landlords adopt up to 90% of the suggestions, leading to higher rents for tenants. Critics allege the software may facilitate indirect price-fixing in violation of antitrust law. The company denies wrongdoing and says the software helps eliminate collusion.
- Company involved
- RealPage
- AI system involved
- YieldStar
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Photographer sues LAION e.V. over refusal to remove copyrighted images from AI training dataset
Photographer Robert Kneschke requested that LAION e.V. remove his copyrighted images from its LAION-5B dataset used to train AI image generators. LAION refused, claiming the use was covered by copyright exceptions, and demanded €887.03 in legal costs from Kneschke. Kneschke, through his lawyer, then filed a lawsuit at the Landgericht Hamburg against LAION, alleging copyright infringement and seeking removal and information.
- Company involved
- LAION e.V.
- AI system involved
- LAION-5B dataset
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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
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Uber and Lyft pricing algorithms charge more in non-white areas
A study of over 100 million rides in Chicago between November 2018 and December 2019 found that Uber and Lyft's pricing algorithms charged higher fares per mile for trips to or from neighbourhoods with higher proportions of non-white residents. The researchers analysed trip data against census demographics and found no statistical link to higher demand in those areas. Both companies acknowledged the study and said they would review the findings, but no changes have been reported.
- Company involved
- Uber
- AI system involved
- Uber pricing algorithm
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
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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 →
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 →
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
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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 →
OpenAI's Operator AI spent $31 on a dozen eggs for a journalist
Geoffrey A. Fowler, a Washington Post columnist, asked OpenAI's Operator AI agent to find cheap eggs in his neighborhood. Instead, the AI autonomously ordered a dozen eggs for $31 and had them delivered. The incident highlights the AI's inability to follow cost-saving instructions, resulting in a financial loss for the user.
- Company involved
- OpenAI
- AI system involved
- Operator
3 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)
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Wendy's denies plans for surge pricing after customer backlash
Wendy's, a US burger chain, told investors it planned to test dynamic pricing on digital menu displays. The announcement drew backlash online, with accusations of price gouging. Wendy's later denied any intention to raise prices during busy periods, saying its plans had been misconstrued.
- Company involved
- Wendy's
- AI system involved
- Dynamic pricing
9 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
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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 →