Portland Metro ends Replica partnership over data privacy concerns
Portland Metro, an elected regional government in Oregon, ended its pilot project with movement data company Replica after a disagreement about data sharing. Portland Metro requested raw, disaggregated data, which Replica refused to provide, citing user privacy concerns. The partnership was terminated without payment.
- Company involved
- Portland Metro
- AI system involved
- Replica
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 →
USPS algorithm RRECS causes pay cuts for two-thirds of rural mail carriers
The United States Postal Service (USPS) implemented a new algorithm, RRECS, to evaluate rural carrier routes and determine pay. Due to flaws in how carriers scanned packages, the algorithm underestimated route times, resulting in pay cuts for 66 per cent of rural carriers, some losing thousands of dollars annually. Carriers report that they were not adequately trained on the system and that the cuts are scheduled to take effect, though they have been postponed multiple times. The USPS stated that the system is the result of a nationally negotiated agreement.
- Company involved
- United States Postal Service
- AI system involved
- RRECS
9 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 →
AI-generated travel guides flood Amazon, deceiving customers
AI-generated travel guides are flooding Amazon, allegedly written by scammers using AI to produce generic, low-quality content. Customers who purchase these guides receive poor information and feel defrauded. Amazon claims to enforce content guidelines but many such books remain on the platform.
- Company involved
- Amazon
8 source articles · read the reporting →
Presto Automation uses off-site human agents to double-check AI drive-thru orders
Presto Automation Inc, which markets an AI voice assistant for drive-thru ordering, used off-site human agents in countries including the Philippines to double-check orders in more than 70% of customer interactions, according to SEC filings reported by Bloomberg. The company told Bloomberg that the process helps train its system and should reduce human intervention over time. Presto's drive-thru AI is used in more than 400 restaurants, including Del Taco, Carl's Jr and Checkers, and its stock fell more than 10% after the reports.
- Company involved
- Presto Automation Inc.
8 source articles · read the reporting →
Amazon faces class action over allegedly rigged buying algorithms
Two consumers filed a proposed class action against Amazon in Washington federal court, alleging that the company rigged its algorithms to boost sales of its own retail business and third-party sellers using its fulfillment service. The plaintiffs claim that hundreds of millions of customers have overpaid for items as a result. The lawsuit is pending.
- Company involved
- Amazon.com Inc.
- AI system involved
- Amazon's buying features
6 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 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 →
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 →
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
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's AI shopping tool lists products from retailers without consent
Amazon launched a program called Shop Direct and a 'Buy for Me' AI agent that scrapes products from other retailers' websites and lists them on Amazon without their permission. Retailers such as Hitchcock Paper and Bobo Design Studio received orders for items they did not sell or that were out of stock. Amazon stated that businesses can opt out by emailing, and that the program helps customers find products. Some retailers have accused Amazon of exploiting their businesses.
- Company involved
- Amazon
- AI system involved
- Shop Direct / Buy for Me
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 →
Princeton Review charges higher SAT prep fees to Asian Americans
A ProPublica study found that Princeton Review's geographically-determined pricing system charges Asian American students almost twice as likely as other ethnicities to pay the highest prices for online SAT tutoring. The system sets prices based on location, with higher prices in areas like New York City where Asian Americans are concentrated. Princeton Review stated that prices reflect local costs and competition, but the disparity raises concerns about racial discrimination in automated pricing.
- Company involved
- Princeton Review
7 source articles · read the reporting →