ViaQuatro's facial recognition system in São Paulo metro challenged in court
In April 2018, ViaQuatro installed the Digital Interactive Doors System, developed by AdMobilize, on the São Paulo metro's yellow line. The system used cameras to detect passengers' faces and claimed to infer their emotion, age, and gender in order to target advertisements. The Brazilian Institute of Consumer Protection (IDEC) filed a public civil action alleging that the system violated consumer and data protection laws by processing biometric data without consent and making pseudoscientific and discriminatory inferences. A judge ordered the cameras removed in August 2018, and the case is pending a final ruling.
- Company involved
- ViaQuatro
- AI system involved
- Digital Interactive Doors System (DID system)
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 →
PwC develops facial recognition tool to monitor employees working from home
Accounting giant PwC has developed a facial recognition tool that logs when employees are absent from their computer screens while working from home. The tool, intended for financial institutions, requires workers to provide written reasons for any absences, including toilet breaks. Commentators have criticised the tool as a huge invasion of privacy, with concerns about damage to trust and increased stress. PwC stated that the technology is designed to help regulated institutions meet compliance obligations and that voluntary consent of traders is essential.
- Company involved
- PwC
8 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 →
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 →
Reaves Law Firm, PLLC v. Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, et al. (W.D. Tennessee): AI-hallucinated content in court…
The AI generated fictitious legal authorities and arguments that were filed in a court motion, misleading the court and opposing counsel.
- Company involved
- Reaves Law Firm, PLLC
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 →
Air Canada liable for chatbot's misleading bereavement advice
Air Canada was found liable by the B.C. Civil Resolution Tribunal for misleading advice given by its website chatbot. The chatbot told a passenger they could retroactively claim a bereavement rate, but the airline later denied the claim. The tribunal ordered Air Canada to pay $812 in compensation, noting the airline's argument that the chatbot was a separate legal entity was 'remarkable'.
- Company involved
- Air Canada
- AI system involved
- Air Canada chatbot
10 source articles · 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 →
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 →
TurboTax and H&R Block AI chatbots give wrong tax advice
A Washington Post review found that AI chatbots from TurboTax and H&R Block were unhelpful or wrong up to half the time when answering tax questions. The chatbots are used by millions of taxpayers. The review tested the chatbots and found them to be unreliable.
- Company involved
- TurboTax and H&R Block
5 source articles · read the reporting →
AAIP investigates Worldcoin's personal data processing in Argentina
The Argentine Agency for Access to Public Information (AAIP) has initiated an investigation into the data processing practices of Worldcoin in Argentina. The investigation focuses on the collection, storage, and use of biometric data, including facial and iris scans, carried out in several cities in exchange for financial compensation. The AAIP aims to verify compliance with the country's data protection law, Ley 25.326, regarding sensitive data handling.
- Company involved
- Worldcoin (Fundación Worldcoin)
- AI system involved
- Worldcoin
8 source articles · read the reporting →
Worldcoin collected biometric data from poor villagers in Indonesia without informed consent
Worldcoin, a cryptocurrency startup, recruited users in developing countries by offering free cash in exchange for iris scans. The company used deceptive marketing, collected more personal data than acknowledged, and failed to obtain meaningful informed consent. Many users received worthless tokens instead of promised money. The company acknowledged some friction but continued its operations.
- Company involved
- Worldcoin
- AI system involved
- chrome orb
5 source articles · read the reporting →
Hong Kong privacy watchdog raids Worldcoin offices over iris scan data collection
Hong Kong's privacy commissioner's office raided six premises linked to Worldcoin, a cryptocurrency company that requires an eye scan from clients for identification. The watchdog is investigating whether the collection of iris scans could lead to sensitive information being compromised. The raids follow investigations into Worldcoin in other jurisdictions.
- Company involved
- Worldcoin
5 source articles · read the reporting →
Worldcoin halts ID verification in Indonesia after regulatory freeze
Worldcoin, the digital identity project developed by Tools for Humanity, voluntarily paused its identity verification services in Indonesia on May 5, 2025, following a regulatory freeze by the Ministry of Communication and Digital Application. The ministry acted after preliminary investigations found that operating companies lacked required electronic system provider licenses. Worldcoin uses its Orb device to scan faces and irises to create unique digital identities. The company said it is committed to addressing any regulatory shortcomings and awaits clearer guidance.
- Company involved
- Worldcoin
- AI system involved
- World ID
3 source articles · read the reporting →
ICO investigates Microsoft's Recall feature for privacy risks
The UK Information Commissioner's Office (ICO) has issued a statement on 22 May 2024 regarding Microsoft's Recall feature. The ICO is making enquiries with Microsoft to understand the safeguards in place to protect user privacy, expecting transparency and necessity in data processing. This follows concerns that the feature may not adequately consider data protection from the outset before being brought to market.
- Company involved
- Microsoft
- AI system involved
- Recall
10 source articles · read the reporting →
AI-generated article misstates Roadzen's Q1 revenue expectations
An AI-generated article on The Motley Fool incorrectly stated that Roadzen's analyst expectations for Q1 revenue were over $21 million, implying a revenue miss of more than 50%. Roadzen clarified that these figures were never issued by its covering analysts and that its actual revenue of $10.9 million was in line with estimates. The Motley Fool later corrected the article and added an editor's note acknowledging the error.
- Company involved
- The Motley Fool
4 source articles · read the reporting →
CryptoRom romance scam uses ChatGPT to lure victims into fake crypto trading
A romance scam known as CryptoRom has been using ChatGPT to generate convincing messages to lure victims into investing in fake cryptocurrency trading apps. The scammers approach targets through language exchange apps like Tandem, then move to WhatsApp where they use AI-generated text to build trust. Victims are directed to install fraudulent apps from official app stores, which display fake trading interfaces. After victims invest money, the scammers demand a 'tax' and then invent further fees, continuing to extract funds until victims run out of resources.
- AI system involved
- ChatGPT
4 source articles · read the reporting →
