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 →
Attempted deepfake CEO voicemail fraud against an unnamed technology company
An attacker used synthetic audio deepfake to leave a voicemail impersonating the CEO of a technology company, asking an employee to call back to finalize an urgent business deal. The employee found it suspicious and referred the matter to the legal department, avoiding any loss. Nisos analyzed the audio and found inconsistencies in pitch and tone.
10 source articles · read the reporting →
China's vocational school students exploited as data annotators for AI
Vocational schools in China force students to work as data annotators for AI companies, paying subminimum wages and taking commissions. Students like Lucy in Shandong spent months labeling data for autonomous driving and content moderation systems, with little learning or career advancement. The practice continues despite new regulations.
2 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 →
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 →
Facebook Allowed Age-Targeted Credit Card Ads Violating Its Policy
The Markup found that four companies—Aspiration, Hometap, Chime, and Varo Bank—ran Facebook ads for credit cards and home equity loans that were targeted by age, excluding users under 25 or 35. This practice violates Facebook's own anti-discrimination policy and may violate the Equal Credit Opportunity Act and California's Unruh Civil Rights Act. Facebook did not respond to requests for comment, and some advertisers said they would review their ad targeting.
- Company involved
- Facebook
- AI system involved
- Facebook Ad Platform
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
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 →
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 →
TOV Realty, LLC v. Suarez; Kosel Equity, LLC v. MacGregor (SC Connecticut): AI-hallucinated content in court filing, 6 hours CLE;…
The AI generated legal briefs containing fabricated citations, which were submitted to the Connecticut Supreme Court.
- Company involved
- GLG Law LLC
- AI system involved
- ChatGPT
1 source article · read the reporting →
iRobot considers selling Roomba home mapping data to advertisers
iRobot's Roomba vacuum cleaners with mapping technology collect detailed floor plan data of users' homes. The company's CEO stated he is considering selling this data to companies like Amazon, Apple, or Google for advertising purposes. Robotics experts express concern about the lack of user consent and potential privacy implications.
- Company involved
- iRobot
- AI system involved
- Roomba 960/980
10 source articles · read the reporting →
Facebook Marketplace loophole allows disguised gun sales
Facebook Marketplace uses AI algorithms and human moderators to prevent illegal item sales. However, sellers have exploited a loophole by listing firearms disguised as expensive gun cases, with the actual gun included. The Independent and Wall Street Journal found multiple listings across US states. Facebook acknowledged the violations and stated that such items would be removed.
- Company involved
- Facebook
- AI system involved
- Facebook Marketplace
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 →
Amazon's routing algorithm forces drivers to cross highways on foot
Amazon's routing algorithm for its Flex app uses 'stop consolidation' to combine deliveries on both sides of the street, requiring drivers to cross busy roads and highways on foot to save time. Drivers in multiple states reported safety risks, including sprinting across four-lane highways. Amazon denied that drivers frequently jaywalk and said it fixes map defects.
- Company involved
- Amazon
- AI system involved
- Flex app
9 source articles · read the reporting →
Amazon Mentor app falsely flags drivers, leading to firings and lost pay
Amazon requires contracted delivery drivers to use the Mentor app, which tracks and scores driving behavior. Drivers report that the app falsely detects infractions, such as incoming calls or picking up a device, causing their scores to drop. This leads to disciplinary actions including firing, loss of bonuses, and reduced pay. Amazon has not addressed the specific allegations.
- Company involved
- Amazon
- AI system involved
- Mentor
10 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 →
Facebook to act on illegal sale of Amazon rainforest land on Marketplace
The BBC investigation revealed that plots of Amazon rainforest were being illegally sold on Facebook Marketplace, including inside protected areas and indigenous reserves. Facebook initially declined to take independent action but later announced it would review listings against a database of protected areas to block illegal sales. Brazil's Supreme Federal Court ordered an inquiry into the practice.
- Company involved
- Facebook
- AI system involved
- Facebook Marketplace
10 source articles · read the reporting →
JMOR Properties v. Artist Alley Townhomes et al. (CA Florida (4d)): AI-hallucinated content in court filing, Bar Referral
The AI generated fabricated legal citations that were included in a court filing, affecting the court and the opposing party.
1 source article · read the reporting →
WebinarTV secretly records Zoom calls and turns them into AI podcasts
WebinarTV, a company that bills itself as a search engine for webinars, is secretly scanning the internet for Zoom meeting links, recording the calls, and turning them into AI-generated podcasts for profit. People only found out their calls were recorded when WebinarTV contacted them to promote its services. The recordings may put call participants at risk.
- Company involved
- WebinarTV
4 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 →
Bruce Willis sells rights to allow deepfake digital twin
Bruce Willis reportedly sold his image rights to Deepcake, a company that creates AI-powered deepfakes, allowing a digital twin of the actor to be used in commercials. A representative for Willis later denied any partnership with Deepcake. The digital twin first appeared in a Russian telecom commercial in August 2021.
- Company involved
- Deepcake
10 source articles · read the reporting →
Exclusive: Zoox grounds Atlanta test fleet after workers report toxic gas exposure symptoms - TechCrunch
Exclusive: Zoox grounds Atlanta test fleet after workers report toxic gas exposure symptoms TechCrunch
1 source article · read the reporting →
SEC charges American Bitcoin Academy over $1.2M AI scam
Brian Sewell, through his company American Bitcoin Academy, allegedly defrauded 15 students of $1.2 million by claiming his Rockwell Fund would use AI to generate high returns. The SEC charged that Sewell never launched the fund and lost the investors' money when his Bitcoin wallet was hacked. The case was settled with Sewell agreeing to pay $1.6 million in disgorgement and a $233,229 penalty.
- Company involved
- American Bitcoin Academy
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 →
