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 →
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 →
Jessica Fuller v. Hyde School, et al. (D. Maine): AI-hallucinated content in court filing, CLE; Firm procedures and certification; Serve…
The AI generated fictitious legal citations that were submitted to the court in a legal filing.
- AI system involved
- ChatGPT or Claude
1 source article · read the reporting →
Polish DPO investigates OpenAI over ChatGPT false data and lack of transparency
The Polish data protection authority (UODO) is investigating a complaint against OpenAI concerning ChatGPT. The complainant alleges that ChatGPT generated false information about him, and that OpenAI failed to correct it or disclose what data it holds, violating GDPR principles of lawfulness, fairness and transparency. The complainant also claims OpenAI did not fulfil its information obligations under Article 12 and Article 5(1)(a) GDPR. UODO has stated it will examine the systemic compliance of OpenAI's data processing with European data protection law.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
9 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 →
Salvini and Lega used non-watermarked AI images in EU election campaign
Matteo Salvini and his party Lega created and posted 19 allegedly non-watermarked AI-generated images on social media as part of their 'More Italy, less Europe' electoral campaign. The images promoted false narratives about the EU, including the 'Muslim Great Replacement' theory and EU support for war in Ukraine. The posts reached millions of users, including a paid Facebook ad that reached over 3 million people. Alliance4Europe reported the incident, highlighting that the posts violated the voluntary 2024 European Parliament Elections Code of Conduct.
- Company involved
- Lega
5 source articles · read the reporting →
Italian DPA says Interior Ministry's Sari Real Time facial recognition lacks legal basis
The Garante per la protezione dei dati personali issued an opinion on Sari Real Time, a facial recognition system developed for the Italian Ministry of Interior. The system, yet to become operational, would compare live video footage of people in public areas with a watch-list and alert police operators. The authority found the planned biometric processing lacked a specific legal basis under Italian law and Directive (EU) 2016/680, and warned it could turn targeted surveillance into mass surveillance.
- Company involved
- Ministero dell'Interno – Dipartimento della pubblica sicurezza
- AI system involved
- Sari Real Time
10 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 →
Swedish welfare agency's AI system flags marginalized groups for fraud investigations
Försäkringskassan, Sweden's Social Insurance Agency, uses an AI risk-scoring system to flag welfare applicants for fraud investigations. The system disproportionately targets women, individuals with foreign backgrounds, low-income earners, and those without university degrees, according to an investigation by Lighthouse Reports and Svenska Dagbladet. Amnesty International has called for the system to be discontinued, citing violations of the right to equality and non-discrimination.
- Company involved
- Försäkringskassan (Swedish Social Insurance Agency)
6 source articles · read the reporting →
Dutch government to refund over 10,000 students over discriminatory DUO fraud algorithm
The Dutch government has pledged to refund over 10,000 students who were unjustly flagged for student finance fraud by a discriminatory algorithm used by the Education Executive Agency (DUO). The algorithm, implemented in 2012, used criteria that disproportionately targeted students from immigrant backgrounds, particularly those of Turkish and Moroccan descent. Following investigations by the Dutch Data Protection Authority and an independent report by PwC, the algorithm was suspended in July 2023 and replaced with a random-sampling system. The government has allocated 61 million euro for refunds.
- Company involved
- Education Executive Agency (DUO)
- AI system involved
- DUO fraud detection system
9 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 →
AfD used AI-generated images for political propaganda on TikTok
In the months before the 2024 European elections, Alternative für Deutschland (AfD) politician Maximilian Krah used AI-generated images on TikTok to create false visual evidence of fictional families, staged nationalist demonstrations, and immigration threats. The AI-generated content was posted to amplify anxieties around migration and cultural identity, with over 1.3 million views across 28 thumbnails. The article alleges that the AfD continued this practice after the elections, weaponizing AI to deepen political divides.
- Company involved
- Alternative für Deutschland (AfD)
5 source articles · read the reporting →
DWP algorithm approved Kickstart gateways with no trading history or based abroad
An FE Week investigation found that the Department for Work and Pensions (DWP) approved dozens of companies as Kickstart gateways through automated due diligence checks using the Cabinet Office Spotlight Tool, although some had little or no trading history or were based abroad. The DWP said gateways were subject to stringent checks and later said human checks were also used. After the findings were shared with the Treasury and the DWP, the department stopped taking gateway applications and scrapped the requirement for small employers to use gateways from 3 February.
- Company involved
- Department for Work and Pensions
- AI system involved
- Cabinet Office Spotlight Tool
3 source articles · read the reporting →
Delhi Police use facial recognition to screen PM Modi rally attendees
Delhi Police used an Automated Facial Recognition System (AFRS) to screen crowds at Prime Minister Narendra Modi's rally on December 22, 2019. The system, originally installed to find missing children, was used to identify possible disruptions. Privacy advocates called the move illegal and unconstitutional, saying it amounts to mass surveillance. Police defended the use, citing credible intelligence about possible disruptions.
- Company involved
- Delhi Police
- AI system involved
- Automated Facial Recognition System (AFRS)
6 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 →
Italian DPA fines Municipality of Trento over AI surveillance projects
The Italian data protection authority (Garante) fined the Municipality of Trento €50,000 for two research projects, Marvel and Protector, that used AI to analyze video, audio, and social media data for public security purposes. The projects involved automated detection of risk events from surveillance cameras and microphones in public spaces, as well as monitoring social media for hate speech. The Garante found multiple violations of privacy law, including lack of a valid legal basis, insufficient anonymization, failure to conduct a data protection impact assessment, and inadequate transparency. The municipality is required to delete the unlawfully processed data.
- Company involved
- Comune di Trento
- AI system involved
- Marvel and Protector
9 source articles · read the reporting →
Italian Data Protection Authority Blocks Replika Chatbot Over Risks to Minors
On February 2, 2023, the Italian Data Protection Authority (Garante) issued an urgent order blocking the AI chatbot Replika from processing personal data of Italian users. The Garante found that Replika lacked effective age verification, allowing minors to potentially receive inappropriate content including sex-related replies, and that its privacy policy violated GDPR transparency requirements. The U.S.-based controller was given 20 days to report on compliance measures and may challenge the order within 60 days.
- AI system involved
- Replika
1 source article · read the reporting →
DC Police Union alleges improper use of Flock camera data by MPD - The National Desk
The Flock license-plate reader system collected and provided vehicle location data to the MPD for use in an internal affairs misconduct investigation, potentially affecting police officers.
- Company involved
- Metropolitan Police Department
- AI system involved
- Flock
1 source article · read the reporting →
Security Health Plan used AI to cut off nursing home care for 85-year-old woman
Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.
- Company involved
- Security Health Plan
- AI system involved
- nH Predict
1 source article · read the reporting →
Greek Data Protection Authority fines Ministry of Migration and Asylum for AI surveillance systems
The Hellenic Data Protection Authority (HDPA) imposed an administrative fine of €175,000 on the Ministry of Migration and Asylum (MMA) for GDPR violations related to the 'Centaur' and 'Hyperion' programmes. These systems use AI behavioral analytics, CCTV, drones, and biometric data to monitor and control access to reception facilities for asylum seekers on Greek islands. The HDPA found that the MMA failed to conduct proper Data Protection Impact Assessments and did not cooperate with the authority. The MMA has been ordered to comply with GDPR within three months.
- Company involved
- Ministry of Migration and Asylum
- AI system involved
- Centaur and Hyperion programmes
10 source articles · read the reporting →
Facebook's automated ad system rejects adaptive fashion ads
Small adaptive fashion companies have had their advertisements repeatedly rejected by Facebook's automated advertising system, which misidentifies their products as medical devices. The system's inability to understand context leads to discrimination against people with disabilities. Facebook has acknowledged the issue and restored some ads, but the problem persists, highlighting biases in machine learning.
- Company involved
- Facebook
- AI system involved
- Facebook automated advertising review system
2 source articles · read the reporting →
Labor unions sue Trump administration over AI social media surveillance
Three labor unions (UAW, CWA, AFT) filed a lawsuit against the U.S. Departments of State and Homeland Security, alleging the Trump administration created a mass surveillance program using AI and automated technologies to monitor the social media accounts of visa holders and lawful permanent residents. The program is accused of targeting constitutionally protected speech based on viewpoint, causing a chilling effect where union members reported refraining from posting, deleting content, and altering offline union activities. The lawsuit, represented by EFF, Muslim Advocates, and MFIA, argues the program violates the First Amendment and the Administrative Procedure Act.
- Company involved
- U.S. Department of State
- AI system involved
- Catch and Revoke
9 source articles · read the reporting →
California AG declares out-of-state ALPR data sharing unlawful
California Attorney General Rob Bonta issued guidance confirming that sharing automated license plate reader (ALPR) data with out-of-state or federal agencies violates state law SB 34. The decision follows years of advocacy by EFF and the ACLU, who demonstrated through public records that many California law enforcement agencies were sharing data with hundreds of external agencies, including ICE and CBP. The guidance mandates that all California agencies review their data sharing and cut off access to out-of-state and federal entities.
- Company involved
- California law enforcement agencies
- AI system involved
- Automated license plate readers (ALPRs)
1 source article · read the reporting →
