Where automated decisions went wrong

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 →

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 →

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 →

MySpiritHalloween.com's AI-generated Dublin parade listing misled hundreds

Nazir Ali, owner of SEO agency and the website MySpiritHalloween.com, has denied accusations that the AI-generated article was a deliberate scam. Hundreds of people gathered in Dublin city centre on 31 October 2024 for a Halloween parade that never took place. Ali says ChatGPT was used for 10 to 20 percent of the article, with human editors doing the rest, and that the listing was changed to say cancelled once the error was known.

Company involved

MySpiritHalloween.com

AI system involved

ChatGPT

5 source articles · read the reporting →

Allstate's proposed retention model charged big spenders more in Maryland

Allstate proposed an auto insurance rate adjustment plan in Maryland using a retention model algorithm that varied premium changes based on existing premiums. The algorithm would have increased rates up to 20% for customers already paying the highest premiums while capping increases at 5% for others, and would have denied meaningful discounts to thousands owed reductions. The Maryland Insurance Administration rejected the plan as discriminatory, but Allstate claims it was withdrawn and has continued proposing similar models elsewhere. The proposal never took effect in Maryland.

Company involved

Allstate Corporation

AI system involved

retention model

9 source articles · read the reporting →

Portland Metro ends Replica partnership over data privacy concerns

Portland Metro, an elected regional government in Oregon, ended its pilot project with movement data company Replica after a disagreement about data sharing. Portland Metro requested raw, disaggregated data, which Replica refused to provide, citing user privacy concerns. The partnership was terminated without payment.

Company involved

Portland Metro

AI system involved

Replica

10 source articles · read the reporting →

LA's VI-SPDAT housing scoring system gives lower priority to Black and Latino people

The Los Angeles Homeless Services Authority uses the VI-SPDAT scoring system to prioritise unhoused people for subsidised permanent housing. An investigation by The Markup found that Black and Latino people consistently receive lower vulnerability scores than White people, leading to lower priority for housing. The agency has acknowledged the racial disparities and is working on a new tool, but continues to use the current system.

Company involved

Los Angeles Homeless Services Authority

AI system involved

VI-SPDAT

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 →

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 →

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 →

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 →

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.

1 source article · 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 →

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 →

Eventbrite algorithm recommended illegal opioid sales to addiction recovery seekers

Eventbrite's recommendation algorithm promoted thousands of listings selling illegal prescription drugs like oxycodone and Xanax alongside addiction recovery events. The listings, which appeared in search results and related events, directed users to unlicensed online pharmacies. Eventbrite acknowledged the issue and removed the listings after WIRED alerted them.

Company involved

Eventbrite

AI system involved

Eventbrite recommendation algorithm

4 source articles · read the reporting →

Lattice cancels plan to give AI digital workers employee records after backlash

Lattice, an HR software company, announced on July 9th that it would give AI digital workers official employee records. After strong backlash from HR professionals and others on LinkedIn, the company canceled the feature on July 12th, stating it 'will not further pursue digital workers in the product.' The feature was intended to manage AI bots such as Devin and Piper, but the company reversed course.

Company involved

Lattice

AI system involved

Lattice

6 source articles · read the reporting →

Delta uses AI from Fetcherr for domestic ticket pricing

Delta Air Lines is using generative AI from Fetcherr to determine some domestic flight prices, currently covering 3% of its network with plans to reach 20% by end of 2025. Democratic senators expressed concern that the AI could be used for individualized pricing based on personal data, leading to higher fares. Delta denies using personal data in pricing and states it complies with regulations. No actual harm has been reported.

Company involved

Delta Air Lines

AI system involved

Fetcherr

8 source articles · read the reporting →

Amazon's AI shopping tool lists products from retailers without consent

Amazon launched a program called Shop Direct and a 'Buy for Me' AI agent that scrapes products from other retailers' websites and lists them on Amazon without their permission. Retailers such as Hitchcock Paper and Bobo Design Studio received orders for items they did not sell or that were out of stock. Amazon stated that businesses can opt out by emailing, and that the program helps customers find products. Some retailers have accused Amazon of exploiting their businesses.

Company involved

Amazon

AI system involved

Shop Direct / Buy for Me

5 source articles · read the reporting →