Where automated decisions went wrong

Canadian Tire chided by BC privacy commissioner for facial recognition without consent

Canadian Tire deployed facial recognition in at least four British Columbia stores between 2018 and 2021 to curb theft and increase staff safety. The BC Privacy Commissioner investigated and found the retailer failed to show a reasonable purpose and did not obtain customer consent, violating the province's Personal Information Protection Act. After the investigation was announced, Canadian Tire discontinued use of the system at all 12 locations and deleted customer data. The commissioner recommended stronger privacy policies and government regulation of biometric technologies.

Company involved

Canadian Tire

10 source articles · read the reporting →

McCormick v. Texakoma Financial (E.D. Texas): AI-hallucinated content in court filing, Public Reprimand; Monetary Sanction; Firmwide citation review; CLE

The AI generated fictitious legal citations and quotes that were included in a court filing, misleading the court and opposing counsel.

Company involved

Ginsburg Law Group, P.C.

1 source article · 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.

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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 →

Study finds credit score algorithms less accurate for minorities

A study of 50 million US consumers found that credit scoring algorithms used by mortgage lenders are less accurate for minority and low-income applicants due to sparse credit data, leading to higher rejection rates. The inaccuracy is due to noise in the data, not bias, so fairer algorithms cannot fix it. The study suggests that adjusting for bias had no effect, and that addressing the inaccuracy could reduce disparities by 50%.

Company involved

Mortgage lenders (unnamed)

AI system involved

Credit scoring algorithms

6 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 →

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 →

In re Rosslyn2016, LLC, et al. (S.D. Texas (Bankruptcy)): AI-hallucinated content in court filing, CLE on generative AI; Civil Contempt;…

The AI generated fabricated legal citations that were submitted to the bankruptcy court.

1 source article · read the reporting →

UnitedHealth used ALERT algorithm to limit mental health coverage, regulators found

ProPublica reports that UnitedHealth Group's Optum subsidiary used the ALERT algorithm to flag mental health patients and therapists as outliers, leading to therapy coverage denials. Regulators in California, Massachusetts and New York alleged this breached the federal Mental Health Parity and Addiction Equity Act, and UnitedHealth agreed to restrict the system in those jurisdictions. The company denies wrongdoing and says its programmes are compliant. Affected patients, including Medicaid enrollees, were left to pay out-of-pocket or go without care.

Company involved

UnitedHealth Group

AI system involved

ALERT

5 source articles · read the reporting →

Southland Homes & Real Estate and Investment, LLC v. Lam (SC California): AI-hallucinated content in court filing, Monetary Sanctions; Bar…

The AI system generated legal briefs containing fabricated case citations, which were filed in court, affecting the court and the opposing party.

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EviCore denied heart catheterization for patient using algorithm

In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.

Company involved

EviCore (a Cigna company)

AI system involved

the dial

6 source articles · 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 →

BC Tribunal Confirms Companies Remain Liable for AI Chatbot-Created Information - Lexology

The AI chatbot provided inaccurate information to a user.

1 source article · 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 →

Lyft approved driver with terrorism conviction due to background check failure

Lyft allowed a driver with a conviction for aiding terrorism to drive for the ride-sharing service. The driver, Raja L. Khan, had served seven years and was denied by Uber and the city of Chicago, but Lyft's independent background check provider approved him. After WGN Investigates reported the issue, Lyft deactivated the driver and apologised, stating the approval was unacceptable and that it would re-run background checks.

Company involved

Lyft

7 source articles · read the reporting →

University of Michigan halts vendor offering student data for AI training

The University of Michigan asked a vendor to stop work after a LinkedIn message offered to license student data for AI training for $25,000. The data came from past research studies and did not contain personal identifiers. The university stated that student data was never for sale and that the vendor had shared inaccurate information. The vendor was asked to halt their work.

Company involved

University of Michigan

5 source articles · read the reporting →

CJEU rules Dun & Bradstreet must explain automated credit decisions under GDPR

A customer was refused a mobile phone contract because of an automated credit assessment by Dun & Bradstreet Austria. The customer took the case to court, which found that Dun & Bradstreet had infringed the GDPR by failing to provide meaningful information about the logic involved. The CJEU ruled that data controllers must explain automated decisions and that trade secrets cannot automatically override the right of access.

Company involved

Dun & Bradstreet Austria GmbH

7 source articles · read the reporting →

Record labels sue AI music companies Suno and Udio for copyright infringement

Major record labels including Universal Music Group, Sony Music Entertainment, and Warner Records, represented by the RIAA, have filed lawsuits against AI music companies Suno and Udio. The lawsuits allege that the companies used copyrighted sound recordings without permission to train their generative AI models, which can produce songs that imitate known artists. The RIAA is seeking damages of up to $150,000 per work. The companies have denied the allegations, with Suno's CEO stating that their technology generates new outputs and does not allow prompts based on specific artists.

Company involved

Suno and Udio

AI system involved

Suno and Udio

10 source articles · read the reporting →

Irish DPC takes Twitter to court over using user data to train Grok AI

The Irish Data Protection Commission has initiated High Court proceedings against Twitter International Unlimited Company over concerns that the company is processing personal data of millions of European X users to train its Grok AI system without adequate consent. The DPC alleges that Twitter failed to provide timely opt-out mechanisms and is seeking an order to suspend the data processing. Twitter denies any wrongdoing.

Company involved

Twitter International Unlimited Company

AI system involved

Grok

10 source articles · read the reporting →

Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits

A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.

Company involved

TennCare (Tennessee Medicaid)

AI system involved

TennCare Connect

10 source articles · read the reporting →

Deloitte software glitches wrongly remove Texans from Medicaid

Advocacy groups filed a complaint with the Federal Trade Commission alleging that Deloitte's eligibility software, TIERS, used by Texas Medicaid, wrongly disenrolled qualified recipients due to glitches. Nearly 1.8 million Texans lost coverage after the pandemic pause ended, with many errors attributed to procedural issues but some linked to system malfunctions. Deloitte denies the claims, while the state says it restored care for at least 90,000 people. The FTC has not yet responded to the complaint.

Company involved

Texas Health and Human Services Commission

AI system involved

TIERS

6 source articles · read the reporting →

Samsung settles Texas lawsuit over ACR data collection on smart TVs

Samsung has settled a lawsuit with the Texas Attorney General over its Automated Content Recognition (ACR) system on smart TVs. The system collected viewing data from users without informed consent. As part of the settlement, Samsung agreed to stop collecting ACR data from Texans without explicit consent and to rewrite its privacy prompts. Samsung also faces a federal class action in New York over similar allegations.

Company involved

Samsung

AI system involved

Automated Content Recognition (ACR)

7 source articles · read the reporting →

TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction

Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.

10 source articles · read the reporting →