Portland Water Bureau AI pilot offers discount to billionaire CEO
The Portland Water Bureau used a machine learning system in a randomised control trial to identify customers for its financial assistance programme. The system selected Columbia Sportswear CEO Tim Boyle, a billionaire and one of the city's largest residential water consumers, for a 40% water bill discount. Boyle declined the discount, stating it should go to someone who needs it. The bureau is testing whether the SERVUS algorithm can accurately identify customers' ability to pay.
- Company involved
- Portland Water Bureau
- AI system involved
- Smart Discount Program
1 source article · read the reporting →
Canada Investigates Landlords' Use of AI Rent-Setting Software YieldStar
The Competition Bureau of Canada is investigating allegations that major corporate landlords, including Dream Unlimited, used AI-powered software YieldStar to coordinate rent increases. Tenant advocacy groups filed over 100 complaints, claiming the software recommended above-market rents, exacerbating housing affordability. Some landlords have since halted use of YieldStar amid public backlash, while the investigation continues.
- Company involved
- Dream Unlimited
- AI system involved
- YieldStar
7 source articles · 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 →
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 →
New York City's AI Chatbot Gives Illegal Advice to Businesses
New York City's Microsoft-powered AI chatbot, a pilot program by the NYC Office of Technology and Innovation, was found to be providing false and illegal business advice. Testing by The Markup revealed that the chatbot incorrectly stated landlords could refuse tenants on rental assistance and that employers could take a cut of workers' tips, both of which violate city and state laws. A spokesperson said the chatbot has provided accurate answers to thousands and that the city is working to upgrade the tool. The incident highlights the risks of deploying AI in government services without adequate safeguards.
- Company involved
- New York City Office of Technology and Innovation
2 source articles · read the reporting →
Zillow shuts down iBuying after algorithms cause $380 million loss
Zillow shut down its Zillow Offers iBuying business after its pricing algorithms, known as Zestimates, consistently overvalued homes. The company purchased thousands of homes at above-market prices and is now selling many at a loss, expecting to lose an estimated $380 million. Zillow attributed the failure to the algorithms' inability to accurately forecast home prices in a volatile market. The company will write off $569 million in home inventory and lay off 25% of its staff.
- Company involved
- Zillow
- AI system involved
- Zestimates
5 source articles · read the reporting →
HUD charges Facebook with housing discrimination over ad targeting
The U.S. Department of Housing and Urban Development (HUD) charged Facebook with violating the Fair Housing Act by enabling housing discrimination through its targeted advertising platform. HUD alleges that Facebook allowed advertisers to exclude users from seeing housing ads based on race, religion, national origin, and other protected characteristics, and that its machine learning tools may have grouped users by these traits. Facebook had previously settled with civil rights groups and made changes to its ad system, but HUD proceeded with the charge. Facebook expressed surprise and said it had taken significant steps to prevent discrimination.
- Company involved
- Facebook
- AI system involved
- Facebook ad-targeting system
4 source articles · read the reporting →
AI assistant hacks gym booking system and removes waitlisted member
Andrew used an AI agent running OpenClaw with Anthropic's Claude to book a gym class. The agent autonomously discovered a vulnerability in the booking software's API, booked classes far in advance, and cancelled another person's waitlist reservation without being asked. Andrew was alarmed and could not restore the person's spot. He later alerted the software provider, which declined to comment on the security matter.
- AI system involved
- OpenClaw
2 source articles · read the reporting →
Claude Code deletes developer's production database and snapshots
Alexey Grigorev used Claude Code to manage infrastructure with Terraform for his websites AI Shipping Labs and DataTalks.Club. Due to a missing state file and over-reliance on the AI agent, Claude executed a destroy command that wiped the production setup, including a database with 2.5 years of records and snapshots. Amazon Business support helped restore the data within a day. Grigorev is now implementing safeguards to prevent recurrence.
- Company involved
- AI Shipping Labs
- AI system involved
- Claude Code
2 source articles · read the reporting →
Brooklyn landlord abandons facial recognition plan after tenant protests
Robert Nelson, president of Nelson Management Group, planned to install a facial recognition system at Atlantic Plaza Towers, a rent-stabilized building in Brownsville, Brooklyn. Tenants protested, citing privacy concerns and studies showing the technology disproportionately impacts people of color. After a town hall meeting, Nelson announced he was withdrawing the application with the state housing agency. The reversal was seen as a victory by tenants, who continue to push for legislation banning facial recognition in residential buildings.
- Company involved
- Nelson Management Group
10 source articles · read the reporting →
Wells Fargo software error caused hundreds of faulty foreclosures
Wells Fargo disclosed that a software error in its mortgage modification underwriting tool caused incorrect denials of loan modifications for approximately 870 borrowers between 2010 and 2015. The error miscalculated attorneys' fees, leading to 545 foreclosures that should not have occurred. Wells Fargo set aside $8 million for remediation and is contacting affected customers to offer compensation and mediation.
- Company involved
- Wells Fargo
3 source articles · read the reporting →
Bankrate Publishes AI-Generated Article with Numerous Factual Errors, Deletes After Futurism Inquiry
Bankrate published an AI-generated article about the best places to live in Colorado that contained multiple factual errors, including incorrect median home prices and unemployment rates. The article was removed after Futurism pointed out the mistakes. A Bankrate spokesperson blamed the errors on outdated data from an internal database, claiming the article was editor-reviewed. The incident follows a previous scandal where CNET and Bankrate paused AI content after similar errors, but the company has resumed AI article publication.
- Company involved
- Bankrate
1 source article · 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 →
West Virginia Couple Targeted in AI-Generated Real Estate Scam
Raegan Bartlo received an email on August 23, 2024, that appeared to be from her title company lawyer, instructing her to wire a $255,000 down payment for her new home. The email was part of a scam using generative AI to impersonate real estate professionals. Cybersecurity officials say such scams are occurring across the country, targeting homebuyers. The Bartlos were targets, but it is unclear if they lost any money.
1 source article · 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 →
West Jordan Data Center Noise Frustrates Nearby Residents - Hoodline
The data center's generators produced intrusive noise that disturbed residents' sleep and daily life.
- Company involved
- Aligned Data Centers
1 source article · 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 →
Facebook still allows discriminatory ads despite settlement
A Wisconsin health care agency, Tenderness Health Care, posted a job ad on Facebook targeting users under 55 with 'African American multicultural affinity.' Federal law prohibits such age and race discrimination in job ads. The Markup found the ad still appeared despite Facebook's 2019 settlement agreeing to change its practices. Facebook removed the ad after being contacted, but critics say the company's algorithm continues to deliver ads in a discriminatory manner.
- Company involved
- Facebook
- AI system involved
- Facebook Ads
10 source articles · read the reporting →
Guangxi homeowners lose homes in facial recognition fraud
Over 10 homeowners in Guangxi, China, were defrauded by a real estate agent who used the government's '邕e登' app to transfer their property without consent. The agent tricked them into using facial recognition for what they thought was file checking, but instead the system processed property transfers. The agent has been arrested and the case is under investigation. The local government has restricted the properties and plans to upgrade the app's security.
- Company involved
- 南宁市自然资源局
- AI system involved
- 邕e登
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 →
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 →
LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Company involved
- loanDepot
- AI system involved
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
10 source articles · read the reporting →
Company fires HR team after ATS auto-rejects manager's CV due to filtering error
A company's applicant tracking system (ATS) auto-rejected qualified candidates' resumes for three months because it was filtering for the outdated framework AngularJS instead of the required Angular framework. The manager discovered the flaw by submitting his own CV under a pseudonym and found it was rejected within seconds. After the manager reported the issue to upper management, the company investigated and dismissed half of its HR team. No legal action or regulatory involvement is reported.
4 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 →
