Arity collected drivers' data via apps for insurance scores
Popular smartphone apps including Life360, MyRadar and GasBuddy reportedly shared users' location and motion data with Arity, an Allstate-owned company. Arity used the data to calculate driving scores that could be sold to car insurers to set rates. Users were said not to be clearly informed that their data would be used for insurance pricing. Life360 and Arity stated that users had to opt in and that no personally identifiable driving data was shared without consent.
- Company involved
- Arity
- AI system involved
- Arity IQ network
2 source articles · read the reporting →
Deliveroo's rider-ranking algorithm ruled discriminatory by Italian court
An Italian court in Bologna ruled that Deliveroo's reputational-ranking algorithm discriminated against delivery riders. The algorithm failed to distinguish between legally protected reasons for not working, such as sickness or strike action, and other reasons. The court ordered Deliveroo to pay €50,000 to the applicants and publish the ruling. Deliveroo stated that the shift-reservation system linked to the algorithm is no longer in use and disagreed with the decision.
- Company involved
- Deliveroo
2 source articles · read the reporting →
Apple Intelligence feature flags scam messages as priority alerts
Apple's 'Apple Intelligence' notification summarisation feature, introduced in late 2024, is reportedly prioritising scam messages on iPhones, iPads, and Macs. Users have reported that the AI struggles to differentiate fraudulent emails from genuine alerts, with one user seeing a scam email claiming he owed $465 flagged as a priority. Experts warn that the summarisation removes context, potentially making scams more effective. Apple has stated it plans to update the feature to clarify when summaries are AI-generated.
- Company involved
- Apple
- AI system involved
- Apple Intelligence
5 source articles · read the reporting →
Royal Free London publishes audit into Streams app data processing
The Royal Free London NHS Foundation Trust published an audit into its use of the Streams app, following an investigation by the Information Commissioner's Office (ICO) in July 2017. The Streams app alerts clinicians to patients at risk of acute kidney injury. The audit, conducted by Linklaters, concluded that the trust's use of Streams was lawful and complied with data protection laws, although areas for improvement were identified. The ICO later recognised that the trust had completed all required actions.
- Company involved
- Royal Free London NHS Foundation Trust
- AI system involved
- Streams
10 source articles · read the reporting →
Mumbai Cyber Police Bust Deepfake Share Trading Scam by Valueleaf
Mumbai Cyber Police arrested four individuals from Bengaluru-based advertising agency Valueleaf for allegedly circulating deepfake videos of stock market experts to deceive investors. The videos, created for Hong Kong-based First Bridge, were promoted despite knowledge of their falsity and potential financial harm. Meta flagged the content, but the accused evaded detection by increasing ad accounts and changing domain locations. The case, registered under the Bhartiya Nyaya Sanhita and Information Technology Act, is under investigation to determine the number of defrauded investors.
- Company involved
- Valueleaf
1 source article · 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 →
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
10 source articles · read the reporting →
Inland Revenue warns of AI scam using commissioner's image
Scammers used AI-generated images and messaging to impersonate New Zealand's Commissioner of Inland Revenue, Peter Mersi, in social media ads inviting people to a fake crypto tax webinar. The ads aimed to trick people into giving personal information for identity theft or account access. Inland Revenue received over 3000 scam reports in three months and worked to have the ads removed, but they kept reappearing. The department warned the public about the increasing use of AI in investment scams.
2 source articles · read the reporting →
Facebook's AI Ad Moderation Erroneously Bans Small Business Advertisers
In 2020, Facebook increased reliance on AI to moderate ads after sending human reviewers home due to COVID-19. The AI system mistakenly disabled advertising accounts and blocked ads of numerous small business owners, who reported losing tens of thousands of dollars in revenue. Advertisers faced slow and opaque customer support, with some waiting weeks or months for appeals. Facebook acknowledged the errors and restored some accounts, but many remained unresolved ahead of the holiday season.
- Company involved
- Facebook
4 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 →
Google AI Overviews provide inaccurate finance information in 43% of searches
A study by The College Investor found that Google's AI Overviews provided misleading or inaccurate information in 43% of 100 personal finance-related searches. The AI-generated answers included outdated tax rules and incorrect student loan repayment plan details. One user believed she could convert her 529 plan to a Roth IRA in California, which is not allowed. Google has not responded to requests for comment.
- Company involved
- Google
- AI system involved
- AI Overviews
3 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 →
Michael L. Ruiz v. Magellan Financial & Insurance Services (2) (D. Arizona): AI-hallucinated content in court filing, Formal public reprimand
AI-hallucinated fake quotations were included in court filings submitted by counsel Elizabeth Tate, misleading the court.
1 source article · 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 →
Thomas Raynard James v. Detective Kevin Conley, et al. (S.D. Florida): AI-hallucinated content in court filing, Bar Referral
AI generated hallucinated content in a court filing, affecting the legal process and the lawyers who filed it.
1 source article · 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 →
California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors
Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.
- Company involved
- Maxpread Technologies
8 source articles · read the reporting →
FTC settles with IntelliVision over deceptive facial recognition claims
The Federal Trade Commission (FTC) took action against IntelliVision Technologies Corp. for making false, misleading, or unsubstantiated claims about its AI-powered facial recognition software. The company allegedly claimed its software had one of the highest accuracy rates on the market and was free of gender or racial bias, without supporting evidence. The FTC also alleged that IntelliVision did not train its software on millions of faces as claimed, but on images of approximately 100,000 individuals. Under a proposed consent order, IntelliVision is prohibited from making such misrepresentations without competent and reliable testing.
- Company involved
- IntelliVision Technologies Corp.
- AI system involved
- IntelliVision facial recognition software
9 source articles · read the reporting →
ScaleFactor reportedly failed to deliver promised automated bookkeeping software
ScaleFactor, an Austin-based startup, is reported to have failed to deliver the automated, real-time bookkeeping tools it promised customers, instead relying on human bookkeepers and a Filipino contract accounting firm. The company told Forbes in June that it was shutting down, initially blaming the pandemic, but Forbes later reported that its problems predated Covid-19. Investors reportedly came to see the company as more of a services business than a software platform, and pulled funding after a pivot to a marketplace model. No legal or regulatory action is reported.
- Company involved
- ScaleFactor
10 source articles · read the reporting →
Quinteros v. Harbor Distributing, LLC (CA California (1d)): AI-hallucinated content in court filing, Monetary Sanction; Bar referral
AI generated hallucinated legal citations that were filed in court, misleading the court and opposing counsel.
- Company involved
- Lipeles Law Group
1 source article · read the reporting →
IRCC uses AI triage for Temporary Resident Visa applications
Immigration, Refugees and Citizenship Canada (IRCC) uses an AI system called Advanced Analytics to triage Temporary Resident Visa applications from India and China. The system categorizes applications into tiers, with Tier 1 approved automatically and others sent to human officers. Critics allege the system lacks transparency and may introduce bias, leading to visa refusals without clear rationale. The author, a Canadian immigration lawyer, is filing Federal Court cases on behalf of clients affected by refusals.
- Company involved
- Immigration, Refugees and Citizenship Canada (IRCC)
- AI system involved
- Advanced Analytics Triage of Overseas Temporary Resident Visa Applications
10 source articles · read the reporting →
California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
Serco Leisure issued enforcement notices for unlawful biometric monitoring of employees
Serco Leisure and associated trusts used facial recognition and fingerprint scanning to monitor employee attendance at 38 leisure facilities. The ICO found they unlawfully processed biometric data of over 2,000 employees. Enforcement notices were issued ordering them to stop.
- Company involved
- Serco Leisure Operating Limited
8 source articles · read the reporting →
