Amazon accused of using Project Nessie algorithm to inflate prices
Amazon is accused of using a secret algorithm called Project Nessie to inflate prices on its platform. The algorithm monitored competitors' prices and raised its own, then reverted if rivals didn't follow. The practice was revealed through an FTC lawsuit. Amazon says it scrapped the program in 2019 and denies wrongdoing.
- Company involved
- Amazon
- AI system involved
- Project Nessie
10 source articles · read the reporting →
BetterHelp settles FTC charges over sharing mental health data with advertisers
Mozilla's review of mental health apps found that many, including BetterHelp, had poor privacy and security practices. BetterHelp was accused of improperly sharing customers' sensitive data with advertisers like Facebook and Snapchat after promising to keep it private. The company agreed to pay $7.8 million to settle FTC charges. The incident highlights ongoing privacy concerns in the mental health app market.
- Company involved
- BetterHelp
- AI system involved
- BetterHelp
4 source articles · read the reporting →
Prisma Labs wins arbitration in Lensa biometric privacy lawsuit
Artificial intelligence company Prisma Labs is accused of violating Illinois' biometric privacy law by collecting facial geometry data from users of its Lensa app. A proposed class action was filed, but a California federal judge granted Prisma's motion to compel arbitration because users agreed to it during sign-up. The plaintiff alleges the app collected his facial data without consent.
- Company involved
- Prisma Labs Inc.
- AI system involved
- Lensa AI
8 source articles · read the reporting →
Krafton CEO used ChatGPT to plan firing of Subnautica founders, court finds
Krafton, the Korean publisher of Subnautica, is accused of using ChatGPT to devise a plan to fire the founders of its subsidiary Unknown Worlds and avoid paying up to $250 million in contractual earnout bonuses. The Delaware Chancery Court ruled that Krafton breached its contract, ordering the reinstatement of CEO Ted Gill. Krafton has stated it disagrees with the ruling and is evaluating its options.
- Company involved
- Krafton
- AI system involved
- ChatGPT
3 source articles · read the reporting →
Washington Post uses algorithm to set subscription prices based on personal data
The Washington Post is accused of using an algorithm to set subscription prices based on subscribers' personal data. Some subscribers received emails stating that their new price was determined by an algorithm using their personal data. The practice, known as surveillance pricing, has drawn criticism from Democratic lawmakers who have proposed legislation to ban it.
- Company involved
- Washington Post
6 source articles · read the reporting →
Amazon Buy Box algorithm accused of overcharging UK consumers by £1 billion
Consumer champion Robert Hammond has filed a collective proceedings order application against Amazon in the UK Competition Appeal Tribunal. The claim alleges that Amazon's Buy Box algorithm manipulated search results to favour products more profitable for Amazon, obscuring cheaper alternatives and causing approximately 49.4 million UK consumers to overpay by more than £1 billion between October 2015 and June 2020. The algorithm determined the first-ranked item in the Buy Box, which consumers accepted over 80% of the time. The case is pending, and similar investigations by the Italian Competition Authority and the UK Competition and Markets Authority are ongoing.
- Company involved
- Amazon
- AI system involved
- Buy Box algorithm
5 source articles · read the reporting →
U.S. Federal Court Allows CIPA Class Action Against AI Customer Service Provider to Proceed - Wilson Sonsini
The AI system intercepted and recorded a customer's phone call and collected her personal and financial information without consent.
- Company involved
- ConverseNow Technologies, Inc.
1 source article · read the reporting →
Patagonia Targeted by Privacy Class Action for Use of Customer Service AI Software - Law.com
The system intercepted, recorded, and mined data from customer service calls, affecting customers' privacy.
- Company involved
- Patagonia
- AI system involved
- Talkdesk
1 source article · read the reporting →
Not Again! A Second Talkdesk Customer Is Sued for Its Use of Contact Center AI - cxtoday.com
The system intercepted, recorded, and analyzed the communications of LegalShield customers without their consent.
- Company involved
- LegalShield
- AI system involved
- Talkdesk CCaaS
1 source article · read the reporting →
[FSD On-road] Tesla: 2 Minor Accidents in Korea, Repair Costs Up to 6.97 Million Won
[FSD 온로드] 테슬라 “국내 경미사고 2건…수리비 최대 697만원” - 블로터
Tesla reported two minor accidents involving its vehicles in South Korea. The repair costs reached up to 6.97 million won. The information was published by Bloter.
- Company involved
- Tesla
- AI system involved
- FSD
1 source article · read the reporting →
McDonald's Sued for Using AI to Manipulate Menu Prices
تُقاضى شركة ماكدونالدز لاستخدامها الذكاء الاصطناعي للتلاعب بأسعار قوائم الطعام. - Vietnam.vn
McDonald's is facing a class-action lawsuit in the US alleging it used an AI-powered pricing system to coordinate menu prices across franchises, potentially violating antitrust laws. The company denies the claims, stating that franchisees still determine their own prices and that the tools are common in the industry.
- Company involved
- McDonald's
1 source article · read the reporting →
“Listen Up” if Your AI Policy Does Not Cover AI Recording Issues –Another Class Action Lawsuit Filed Over Third Party…
AI system recorded and analyzed calls between a dental company and its patients
- Company involved
- dental company
1 source article · read the reporting →
Talkdesk Hit With Class Suit Over Customer Service Software - news.bloomberglaw.com
The system secretly recorded and analyzed customer service conversations of callers to Patagonia and Zumiez without consent.
- Company involved
- Talkdesk Inc.
- AI system involved
- CX Cloud
1 source article · read the reporting →
Who Gives A Crap suspends AI agent after email error said prices would double - SmartCompany
The AI agent incorrectly confirmed a doubled subscription price to a customer.
- Company involved
- Who Gives A Crap
1 source article · read the reporting →
Air Canada ordered to pay customer after airline's chatbot misguided him about fares - Daily Hive
The chatbot told a customer he could apply for bereavement fares retroactively, leading him to book flights at full price expecting a partial refund.
- Company involved
- Air Canada
1 source article · read the reporting →
An Air Canada chatbot lied to a passenger about bereavement discounts - qz.com
The chatbot misinformed a passenger about eligibility for bereavement fares, leading him to pay full price instead of receiving a discount.
- Company involved
- Air Canada
1 source article · read the reporting →
State Farm hit with lawsuit over AI bias, discrimination and unpaid insurance claims - beinsure.com
Denied or canceled insurance policies and delayed claim payments to policyholders, disproportionately affecting Black and nonwhite, disabled, and abuse survivor policyholders.
- Company involved
- State Farm
1 source article · read the reporting →
Air Canada refund customer like chatbot said it would - TechHQ
The chatbot informed the customer they were eligible for a refund, which the airline later denied.
- Company involved
- Air Canada
1 source article · read the reporting →
AI crawler causes $5,000 bandwidth costs for Read the Docs
In May 2024, an AI crawler downloaded 73 TB of zipped HTML files from Read the Docs, a documentation hosting platform, costing over $5,000 in bandwidth charges. The crawler repeatedly downloaded the same files due to a bug and lack of rate limiting. Read the Docs blocked the crawler and the company reimbursed the costs. Another crawler from Facebook downloaded 10 TB in June 2024, but Facebook did not respond.
- Company involved
- Read the Docs
- AI system involved
- AI crawler
10 source articles · read the reporting →